Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of RCI Hospitality Holdings, Inc. (NASDAQ: RICK) filed a class action complaint for alleged violations of the Securities Exchange Act of 1934 between February 14, 2018 and May 10, 2019. RCI Hospitality Holdings is a holding company that operates live adult entertainment and/or restaurant and bar operations through its subsidiaries.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/rci-hospitality-holdings/
RCI Hospitality Accused of Hiding Related Party Transactions
According to the complaint, since 2017, RCI Hospitality had been affirming its past financial results and claimed to have been fully disclosing all related party transactions. On December 11, 2018, RCI Hospitality revealed that it would be unable to timely file its annual report due to delays in completing its financial statement audits. On this news, its share price fell almost 6%. On December 31, 2018, RCI filed its late annual report. However, it failed to reveal that the company was engaging in numerous transactions with the CEO, including lending him significant sums of money, and disclosed that management had identified material weaknesses over revenues. In May 2019, RCI Hospitality announced that the U.S. Securities and Exchange Commission had opened an informal inquiry into accusations made in the short-selling community, and as a result of the pending investigations, would not be able to file its quarterly report. On this news, RCI Hospitality's share price fell over 7% to close at $20.48 per share on May 13, 2019, and continues to decline.
RCI Hospitality Holdings Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, lkandinov@robbinsarroyo.com or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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Leo Kandinov
Robbins Arroyo LLP
5040 Shoreham Place
San Diego, CA 92122
lkandinov@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com