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INVESTOR ALERT: Law Offices of Howard G. Smith Announces the Filing of a Securities Class Action on Behalf of RCI Hospitality Holdings, Inc. Investors (RICK)

May 22, 2019

BENSALEM, Pa.--(BUSINESS WIRE)--May 22, 2019--

Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased RCI Hospitality Holdings, Inc. (“RCI Hospitality” or the “Company”) (NASDAQ: RICK ) securities between February 14, 2018 and May 10, 2019, inclusive (the “Class Period”). RCI Hospitality investors have until July 22, 2019 to file a lead plaintiff motion.

Investors suffering losses on their RCI Hospitality investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.

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.

The complaint filed in this class action 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.

If you purchased shares of RCI Hospitality have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to  howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com:https://www.businesswire.com/news/home/20190522005724/en/

CONTACT: Law Offices of Howard G. Smith

Howard G. Smith, Esquire

215-638-4847

888-638-4847

howardsmith@howardsmithlaw.com

www.howardsmithlaw.com

KEYWORD: UNITED STATES NORTH AMERICA PENNSYLVANIA

INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL

SOURCE: Law Offices of Howard G. Smith

Copyright Business Wire 2019.

PUB: 05/22/2019 01:25 PM/DISC: 05/22/2019 01:25 PM

http://www.businesswire.com/news/home/20190522005724/en

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