New York Charges Spawn Securities Fraud Class Action Against RCI

A securities fraud class action was filed in federal court against RCI Hospitality Holdings Inc., which operates a chain of strip clubs throughout the US.

The claims stem from the tax fraud and bribery charges filed last week against the company and several officers by New York Attorney General Letitia James (D). The company allegedly provided a New York Department of Taxation and Finance auditor with trips to clubs in Florida in exchange for favorable audits. RCI allegedly didn’t pay $8 million in sales taxes to New York City.

Between Dec. 15, 2021, and Sept. 16, 2025, the company’s chief ...