RCI Hospitality Holdings, Inc. (RICK) Faces Investor Class Action Amid Sell-Off After Tax Fraud Indictment Against Company, CEO, & CFO -- Hagens Berman

SAN FRANCISCO, Sept. 23, 2025 /PRNewswire/ -- A securities class action styled, Hernandez v. RCI Hospitality Holdings, Inc., et al., No. 4:25-cv-04477 (S.D. Tex.), has been filed after New York Attorney General James announced an indictment of RCI, CEO (Eric Langan), CFO (Bradley Chhay) and others of 79 crimes, including conspiracy, bribery, and criminal tax fraud. The lawsuit seeks to represent investors who invested in RCI Hospitality Holdings, Inc. (NASDAQ: RICK) securities December 15, 2021 and September 16, 2025.

The indictment and severe market reaction has prompted national shareholders rights firm Hagens Berman to continue its investigation into whether RCI may intentionally have misled investors about its adherence to laws, sufficiency of internal controls, and adherence to applicable accounting rules.

The firm urges investors in RCI who suffered significant losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact its attorneys.

Class Period: Dec. 15, 2021 – Sept. 16, 2025.
Lead Plaintiff Deadline: Nov. 20, 2025
Visit: www.hbsslaw.com/investor-fraud/rick
Contact the Firm Now: [email protected]
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RCI Hospitality Holdings, Inc. (RICK) Securities Class Action:

The litigation is focused on the propriety of RCI's repeated assurances that its financial statements complied with applicable accounting rules and that its internal controls over financial reporting were sufficient. These include the company's assurances that "[w]e have developed comprehensive policies aimed at ensuring that the operation of each of our nightclubs is conducted in conformance with local, state, and federal laws."

The complaint alleges that RCI made false and misleading statements while failing to disclose crucial information to investors. More specifically it alleges that RCI engaged in tax fraud, committed bribery to cover up the scheme, and understated the legal risks it faced.

Investors learned the truth on September 16, 2025, when NYAG James announced that the office indicted RCI, CEO Eric Langan, CFO Bradley Chhay and others. James said "[a]n investigation by the Office of the Attorney General ('OAG') revealed that RCI executives bribed an auditor with the New York Department of Taxation and Finance ('DTF') to avoid paying over $8 million in sales taxes to New York State and the state from 2010 to 2024." The 79 count indictment charges RCI, five of its executives, and three RCI-owned strip clubs in Manhattan with conspiracy, bribery, and criminal tax fraud among other crimes.

On this news, the price of RCI shares declined almost 16% on September 16, 2025.

"We're focused on investors' losses and whether RCI may have intentionally misled investors about its compliance with relevant anti-bribery requirements, adherence to relevant accounting rules, and the sufficiency of internal controls," said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you invested in RCI and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »

If you'd like more information and answers to frequently asked questions about the RCI case and our investigation, read more »

Whistleblowers: Persons with non-public information regarding RCI should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. 

SOURCE Hagens Berman Sobol Shapiro LLP