NEW YORK, July 01, 2019 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against RCI Hospitality Holdings, Inc. (“RCI” or the “Company”) (NASDAQ: RICK) and certain of its officers. The class action, filed in United States District Court, for the Southern District of Texas, and indexed under 19-cv-02318, is on behalf of a class consisting of all persons and entities other than Defendants who purchased or otherwise acquired RCI securities between August 10, 2017, and May 10, 2019, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased RCI securities during the class period, you have until July 22, 2019, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
RCI, through its subsidiaries, owns and operates gentlemen’s clubs and restaurants in locations throughout the United States.
The Complaint alleges that throughout the Class Period, the 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, the defendants failed to disclose to investors that: (1) the Company engaged in numerous transactions with its Chief Executive Offer, Eric Langan, including lending him significant sums of money; (2) these practices were reasonably likely to lead to regulatory scrutiny of the Company; (3) as a result of investigations into the Company's governance, the Company would be unable to timely file its financial statements; and (4) as a result of the foregoing, the defendants' positive statements about the Company's business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.
On May 10, 2019, the Company filed a Form 12b-25 with the SEC that stated it could not timely file its Form 10-Q for the Fiscal 2019 second quarter, citing the need to complete an internal review related to negative stories published about the Company.
On this news, the Company’s shares fell $1.67 per share, or over 7.5%, to close at $20.48 per share on May 13, 2019, damaging investors.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby