BENSALEM, Pa.–(BUSINESS WIRE)–lt;a href=”https://twitter.com/search?q=%24RICK&src=ctag” target=”_blank”gt;$RICKlt;/agt; lt;a href=”https://twitter.com/hashtag/classaction?src=hash” target=”_blank”gt;#classactionlt;/agt;–Law Offices of Howard G. Smith announces that a class action lawsuit has
been filed on behalf of investors who purchased RCI Hospitality
Holdings, Inc. (“RCI Hospitality” or the “Company”) (NASDAQ: RICK)
securities between February 14, 2018 and May 10, 2019, inclusive
(the “Class Period”). RCI Hospitality investors have until July 22,
2019 to file a lead plaintiff motion.
Investors suffering losses on their RCI Hospitality investments are
encouraged to contact the Law Offices of Howard G. Smith to discuss
their legal rights in this class action at 888-638-4847 or by email to [email protected].
On December 11, 2018, RCI Hospitality stated that it could not timely
file its annual report with the SEC due to “delays in completing the
audit of its financial statements for the year ended September 30, 2018.”
On this news, the Company’s share price fell $1.37, or approximately 6%,
to close at $22.33 per share on December 12, 2018, thereby injuring
investors.
Then, on May 10, 2019, RCI Hospitality stated that it could not timely
file its quarterly report with the SEC for the period ended March 31,
2019 due to pending investigations concerning negative articles
published in mid- and late 2018 about the company.
On this news, the Company’s share price fell $1.67, or over 7%, to close
at $20.48 per share on May 13, 2019, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the
Class Period, Defendants made materially false and/or misleading
statements, as well as failed to disclose material adverse facts about
the Company’s business, operations, and prospects. Specifically,
Defendants failed to disclose to investors: (1) that the Company engaged
in numerous transactions with the CEO, including lending him significant
sums of money; (2) that these practices were reasonably likely to lead
to regulatory scrutiny of the Company; (3) that, as a result of
investigations into the Company’s governance, the Company would be
unable to timely file its financial statements; and (4) that, as a
result of the foregoing, Defendants’ positive statements about the
Company’s business, operations, and prospects were materially false
and/or misleading and/or lacked a reasonable basis.
If you purchased shares of RCI Hospitality have information or would
like to learn more about these claims, or have any questions concerning
this announcement or your rights or interests with respect to these
matters, please contact Howard G. Smith, Esquire, of Law Offices of
Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania
19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by
email to [email protected],
or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some
jurisdictions under the applicable law and ethical rules.
Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
[email protected]
www.howardsmithlaw.com
