INVESTOR ALERT: Morris Kandinov LLP Investigating RCI Hospitality Holdings, Inc. (RICK)

San Diego, California--(Newsfile Corp. - October 7, 2025) - National law firm Morris Kandinov has recovered millions of dollars for shareholders and is recognized as a Top 25 Firm in the 2024 ISS Securities Class Action Services Report. Morris Kandinov is investigating RCI Hospitality Holdings, Inc. for possible breaches of fiduciary duties and other violations of law. If you are a current owner of shares, contact leo@moka.law.

RCI owns and operates night clubs offering adult entertainment, restaurants, and bar operations throughout the United States, including Rick's Cabaret, Vivid Cabaret, and Hoops Cabaret and Sports Bar. On September 16, 2025, the New York Attorney General ("NYAG") announced indictments of top executives of RCI for "roles in a major, multimillion dollar criminal tax fraud and bribery scheme." According to the NYAG, its investigation revealed that RCI executives allegedly "bribed an auditor with the New York Department of Taxation and Finance to avoid paying over $8 million in sales taxes to New York City and the state from 2010 to 2024." These alleged bribes included over a dozen "multi-day trips to Florida" with $5,000 per day of their in-house currency called "Dance Dollars" to be used at RCI night clubs. According to the NYAG, this alleged bribery scheme was "authorized, directed, and overseen by Eric Langan, RCI's president and Chief Executive Officer, Bradley Chhay, RCI's Chief Financial Officer, Ahmed Anakar, RCI's Director of Operations, and Shaun Kevlin, a Regional Manager for RCI's New York City strip clubs and later RCI's Assistant Director of Nightclub Operations[.]" and resulted in favorable treatment for "at least six different sales tax audits spanning over a decade."

Following this news, the price of RCI stock fell $5.53 per share, over 16%, to close at $28.79 per share on September 16, 2025, and investors filed a class action lawsuit against RCI. According to the filed complaint, defendants made false and/or misleading statements and/or failed to disclose that: (i) defendants engaged in tax fraud; (ii) defendants committed bribery to cover up the fact that they committed tax fraud; and (iii) as a result, defendants understated the legal risk facing the company. To learn more about this investigation and your rights, visit: https://moka.law/case-contact-form/. All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

Concerned shareholders are encouraged to contact Leo Kandinov to learn more:

leo@moka.law
(619) 780-3993
moka.law

Morris Kandinov LLP is a national law firm that specializes in recovering investment losses and protecting stockholder rights. We work on contingency (i.e., you do not pay our fees out-of-pocket), and our attorneys have made substantial recoveries for investors in jurisdictions across the country. The firm would be happy to further discuss these matters, and any legal rights or remedies potentially available to you, at no charge.

Attorney Advertising. Past results do not guarantee a similar outcome.

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