RCI Hospitality Holdings, Inc. (RICK) Faces Investor Scrutiny After Tax Fraud Indictment Against Company, CEO, & CFO -- Hagens Berman

SAN FRANCISCO, Sept. 17, 2025 /PRNewswire/ -- On September 16, 2025, investors in RCI Hospitality Holdings, Inc. (NASDAQ: RICK) saw the price of their shares decline almost 16% after the New York Attorney General (NYAG) filed a Grand Jury indictment accusing RCI, CEO (Eric Langan), CFO (Bradley Chhay) and others of several crimes.

The development and severe market reaction has prompted national shareholders rights firm Hagens Berman to open an investigation into whether RCI may 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.

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RCI Hospitality Holdings, Inc. (RICK) Investigation:

The investigation 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.

RCI's assurances may have come into question on September 16, 2025, when the financial press reported that RCI, along with five of its executives and three RCI-owned strip clubs in Manhattan, were hit with 79 charges by the NYAG, including bribery, conspiracy, and criminal tax fraud stemming from the alleged bribe of a government tax auditor.

Among the accused are Langan and Chhay, both of whom the NYAG alleges committed conspiracy in the fourth degree for committing multiple overt acts in furtherance of the conspiracy to provide illegal bribes concerning tax audits of Rick's Cabaret, Vivid Cabaret, and Hoops Cabaret (collectively, the "RCI New York Strip Clubs").

According to the indictment, the conspirators' purpose was to induce the auditor of the New York State Department of Tax and Finance ("DTF") "to not assess and penalize the RCI New York Strip Clubs for their failure to collect and pay sales tax during pending and future audits conducted by DTF."

The NYAG further alleges that RCI provided the auditor with numerous forms of remuneration, including complementary RCI New York Strips Clubs benefits, in exchange for millions of dollars in unpaid sales taxes.

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

"We're investigating whether RCI may have 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 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