RCI Hospitality Holdings, Inc.

Johnson Fistel Investigates RCI Hospitality Holdings After Stock Drop Following Indictment

Johnson Fistel, PLLP is investigating potential claims on behalf of investors of RCI Hospitality Holdings, Inc. (NASDAQ: RICK) arising from possible violations of federal securities laws. Investors may be eligible to recover losses stemming from alleged misconduct by the company and its executives.

What if I purchased RCI Hospitality securities?

Company

This field is for validation purposes and should be left unchanged.

If you suffered a loss on your investment and would like to inquire about joining an action to recover your loss under the federal securities laws, please complete the form below. The information provided will be held in strict confidence unless and until you authorize us to disclose it.

Name(Required)

First Last

Email(Required)

Phone(Required)

Estimated Losses(Required)

Where did you see our press release?(Required)

If you selected 'Other' above, please specify below:(Required)

Would you like to receive future case and securities updates from Johnson Fistel, PLLP via email?(Required)

Yes

Would you like to receive information about Johnson Fistel, PLLP's free portfolio monitoring service?(Required)

Yes

By checking the box, I acknowledge that this form is not intended to and does not establish an attorney-client relationship between myself and Johnson Fistel, PLLP, and that submission to or receipt of information from the firm or one of its attorneys via this form, website, email, or telephone does not create an attorney-client relationship.(Required)

I Agree

For more information, contact James Baker at (619) 814-4471, jimb@johnsonfistel.com, or fjohnson@johnsonfistel.com.

Background:

On September 16, 2025, the New York Attorney General announced 79 charges against RCI Hospitality Holdings, five of its executives, and three of its Manhattan-based strip clubs. The charges include conspiracy, bribery, and criminal tax fraud stemming from an alleged decade-long scheme to bribe a government tax auditor in order to avoid paying more than $8 million in sales tax related to “Dance Dollars.”

According to the indictment, RCI executives provided the auditor with trips, cash, and other benefits in exchange for favorable settlements on sales tax audits. Prosecutors allege that in one instance a $3 million tax liability was reduced to just $350,000. The executives also allegedly falsified records to classify bribes as “promo expenses.”

If convicted, the executives face potential prison sentences ranging from 5 to 25 years depending on the charges. Following this announcement, shares of RCI Hospitality (NASDAQ: RICK) fell as much as 16% during Tuesday’s regular session to their lowest level in more than five years, with the stock declining an additional 4.5% in after-hours trading.

Counsel for RCI Hospitality, Daniel J. Horwitz of Tannenbaum Helpern, issued a statement denying the allegations and said the company and individuals intend to vigorously defend themselves.

RCI Hospitality Holdings, Inc.

Johnson Fistel Investigates RCI Hospitality Holdings After Stock Drop Following Indictment

What if I purchased RCI Hospitality securities?

Background:

California

New York

Georgia

Colorado

Idaho