Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against RCI Hospitality Holdings, Inc.
To
join this class action, please complete the following Investor
Certification.
Oklahoma
City, OK (May 22,
2019) – On May 21,
2019, a securities class action lawsuit was filed in the United
States District Court for the Southern District of Texas against RCI
Hospitality Holdings, Inc. (NASDAQ: RICK).
The complaint alleges violations of federal securities laws, Sections
10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5,
including allegations of issuing a series of material or false
misrepresentations to the market which had the effect of artificially inflating
the market price during the Class Period, which is February
14, 2018 through May 10,
2019. More specifically, the complaint filed 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.
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.
Plaintiff
seeks to recover damages on behalf of all RCI
Hospitality Holdings, Inc. shareholders who purchased common stock
during the Class Period and are therefore a member of the Class as described
above. You may move the Court no later
than Monday,
July 22, 2019 to serve as a lead plaintiff for the
entire Class. However, in order to do
so, you must meet certain legal requirements pursuant to the Private Securities
Litigation Reform Act of 1995.
If
you wish to discuss this action, obtain further information and participate in
this or any other securities litigation, or should you have any questions or
concerns regarding this notice or preservation of your rights, please
contact: Robin Hester atrkh@federmanlaw.com