Shareholders Sue Over RCI's Tax Fraud Scandal

RCI Hospitality told investors it was running clean clubs and clean books. Turns out, that wasn't true.

From twenty twenty-one through twenty twenty-four, executives certified spotless financials and claimed tight internal controls. But behind the scenes, RCI's CEO and CFO were running a multi-year tax fraud-bribing a New York state auditor with lavish trips and cash to dodge over eight million dollars in taxes.

Then, in September twenty twenty-five, the New York Attorney General unsealed a seventy-nine-count indictment. The truth was out-RCI's top brass were accused of conspiracy, bribery, and criminal tax fraud.

Investors were stunned. The stock plunged about twenty-six percent in two days. Confidence gone.

Now, more shareholders are joining the lawsuit.