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 2021 through 2024, 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 2025, the New York Attorney General unsealed a 79 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 26% in two days. Confidence gone.

Now, more shareholders are joining the lawsuit.