litigation
confidence high
sentiment negative
materiality 0.80
RCI Hospitality indicted in NY on bribery/tax fraud; CEO and CFO charged
RCI HOSPITALITY HOLDINGS, INC.
- Indicted Sept 16, 2025 in NY Supreme Court on conspiracy, bribery, criminal tax fraud, false instrument charges.
- Defendants include CEO Eric Langan, CFO Bradley Chhay, 3 employees, and 3 NYC subsidiaries.
- Allegations: tax auditor given free club admissions, meals, dances, travel to reduce sales tax liabilities.
- Company denies allegations, intends to vigorously defend and seek a just resolution.
- All three NYC clubs (Rick's Cabaret, Vivid Cabaret, Hoops Cabaret) remain open for business.
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