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Monday, November 18, 2019

RCI Hospitality Holdings securities owner files suit over share price drop

Lawsuits

By Carrie Bradon | Jun 19, 2019

Law money 06

MARSHALL – A securities owner in a company that operates live adult entertainment and/or restaurants and bars alleges he suffered significant losses when share prices fell because of false and/or misleading statements.

Ari Hoffman, individually and on behalf of all others similarly situated, filed a complaint on May 21 in the Marshall Division for the Eastern District of Texas against RCI Hospitality Holdings Inc. and Eric S. Langan alleging violation of the Securities Exchange Act of 1934.

The plaintiff purchased RCI securities during the class period of Feb. 14, 2018, and May 10, the suit states. The suit states in December 2018, the company filed a form with the Securities and Exchange Commission stating that it could not timely file its annual report and the company's share price fell $1.37. 

In March, the suit states RCI stated it could not timely file its quarterly report with the SEC and share prices fell again.

The plaintiff alleges that throughout the class period, the defendants made false and/or misleading statements about the company's business operations and prospects and as a result, he and class members suffered losses and damages.

The plaintiff is seeking a trial by jury, compensatory damages, reasonable costs and expenses, counsel and expert fees and other relief deemed fit. The plaintiff is represented by Joe Kendall of Kendall Law Group PLLC in Dallas; Lionel Z. Glancy, Robert V. Prongay, Lesley F. Portnoy, Charles H. Linehan and Pavithra Rajesh of Glancy Prongay & Murray LLP in Los Angeles, California.

Marshall Division for the Eastern District of Texas case number 4:19-cv-01841

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