World News: 21:40 GMT Wednesday 12th June 2019. [Faruqi & Faruqi LLP via Globe Newswire via SPi World News]
NEW YORK, June 12, 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.
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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 August 10, 2017 and May 10, 2019 (the "Class Period"). The case, No. 19-cv-01917 was filed on May 28, 2019, and has been assigned to Judge David Hittner.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose to investors: (1) RCI engaged in numerous transactions with Langan, its CEO, including lending him large amounts of money; (2) these practices were likely to lead to investigations of RCI by regulators; (3) investigations into RCI’s corporate governance would harm RCI’s prospects by, among other things, causing it to be unable to timely file its financial statements; and (4) as a result, Defendants’ statements about RCI’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On December 11, 2018, RCI Hospitality stated that it could not timely file its annual report with the Securities and Exchange Commission (“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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Globe Newswire: 21:40 GMT Wednesday 12th June 2019
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