Levi & Korsinsky Files Securities Class Action Lawsuit for RCI Hospitality Holdings, Inc. (RICK) Shareholders
Class Action Lawsuit: A class action securities lawsuit has been filed against RCI Hospitality Holdings, Inc. for alleged securities fraud affecting investors between December 15, 2021, and September 16, 2025.
Allegations Against Defendants: The complaint claims that the defendants engaged in tax fraud and bribery, leading to materially false and misleading statements about the company's business and legal risks.
Investor Participation: Investors who suffered losses during the specified period have until November 20, 2025, to request to be appointed as lead plaintiff, with no costs required to participate in the lawsuit.
Levi & Korsinsky's Expertise: The law firm Levi & Korsinsky has a strong track record in securities litigation, having secured significant recoveries for shareholders over the past 20 years.
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RCI Hospitality (RICK) Reports $70.3M Q1 Sales with Strong Nightclub Performance
- Total Sales Growth: RCI Hospitality reported total sales of $70.3 million for Q1 of fiscal 2026, with nightclubs generating $61.9 million, indicating stable performance in the market.
- New Club Contributions: Five newly opened nightclubs contributed $4.9 million in sales, while same-store sales from 52 clubs produced $57.0 million, showcasing the success of new business expansions.
- Bombshells Restaurant Performance: Bombshells reported quarterly sales of $8.4 million, with two new locations generating $1.8 million and nine same-store locations achieving $6.6 million, despite a $1.2 million sales reduction from four underperforming locations closed last year.
- Market Challenges and Opportunities: Although sales were impacted in October and November due to customer uncertainty from the U.S. government shutdown, RCI still achieved year-over-year growth in higher-margin club service revenues in Q1, demonstrating resilience in adversity.
RCI Hospitality Announces Preliminary Q4 Results
Q4 Revenue and Expansion: RCI Hospitality reported Q4 revenue of $70.9 million, successfully opened Bombshells in Lubbock, TX, and expanded operations at Rick's Cabaret & Steakhouse in Central City, CO.
Share Repurchase and Sales: The company repurchased 72,739 common shares for $2.7 million and sold a small club in Harlingen, TX for $600,000 cash, with a lease starting January 1, 2026.
New Partnerships and Acquisitions: RCI entered a partnership with Jonathan Joseph, selling 49% of Rick's Cabaret Austin for $1.8 million, and acquired 821,000 shares from ADW Capital Partners.
Management Changes and Stock Performance: RCI appointed Reese as interim President and CEO and Molina as interim CFO, while shares fell following Q4 and FY25 club and restaurant sales results.
