RCI Hospitality ‘disappointed’ with NY AG’s decision over indictments

RCI Hospitality (RICK) Holdings issued the following statement from Daniel J. Horwitz of the law firm Tannenbaum Helpern, counsel for the company: “RCI, two executives, three employees, and three clubs were indicted today in New York on state charges alleging non-payment of sales taxes and bribery of a state sales tax auditor. There are no allegations that any company executive or employee personally benefited from the alleged charges. RCI, the individuals involved, and the three clubs deny the allegations and will take all necessary action to defend themselves against these overreaching charges, while continuing to seek a just resolution. We are clearly disappointed with the New York Attorney General’s decision to move forward with an indictment and look forward to addressing the allegations. We remind everybody that these indictments contain only allegations, which we believe are baseless. RCI and the individuals involved are presumed innocent and should be allowed to have their day in court. RCI previously disclosed the New York Attorney General’s investigation in its SEC filings. As a publicly traded and audited company, RCI has a policy of paying all legitimate and non-contested taxes. All three New York City clubs remain open for business.”