SAN DIEGO & HOUSTON–(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;–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, [email protected]
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.
Attorney Advertising. Past results do not guarantee a similar outcome.
Contacts
Leo Kandinov
Robbins Arroyo LLP
5040 Shoreham Place
San
Diego, CA 92122
[email protected]
(619)
525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
