NEW YORK, May 22, 2019 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in RCI Hospitality Holdings, Inc. ("RCI" or the "Company")(NASDAQ:RICK) of the July 22, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

If you invested in RCI stock or options between February 14, 2018 and May 10, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/RICK. There is no cost or obligation to you.

You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com.

CONTACT:
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Attn:  Richard Gonnello, Esq.
rgonnello@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330

The lawsuit has been filed in the U.S. District Court for the Southern District of Texas on behalf of all those who purchased RCI securities between February 14, 2018 and May 10, 2019 (the "Class Period"). The case, Hoffman v. RCI Hospitality Holdings, Inc. et al, No. 19-cv-01841 was filed on May 21, 2019.

The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing 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.

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, RCI's share price fell from $23.73 per share on December 11, 2018 to a closing price of $22.36 on December 12, 2018: a $1.37 or a 6.13% drop.

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, RCI's share price fell from $22.15 per share on May 10, 2019 to a closing price of $20.48 on May 13, 2019: a $1.67 or a 7.54% drop.

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not. 

Faruqi & Faruqi, LLP also encourages anyone with information regarding RCI's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

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