Management ChangeMay 7, 2026, 04:19 PM
RCI Hospitality CEO & CFO Step Down Amid Tax Fraud Indictment
AI Summary
RCI Hospitality Holdings announced that CEO Eric Langan and CFO Bradley Chhay stepped down, replaced by interim officers, following an indictment by the New York Attorney General for criminal tax fraud and bribery. The company also received an SEC subpoena and faces multiple shareholder lawsuits related to these issues. Financially, the company reported a net loss of $4.65 million for the quarter, a significant decline from the $9.07 million net income in the prior year, with total revenues also slightly decreasing.
Key Highlights
- CEO Eric Langan and CFO Bradley Chhay stepped down, replaced by interim officers.
- Company and executives indicted by NY AG for criminal tax fraud and bribery.
- SEC subpoena received related to the NY AG investigation.
- Shareholder class action and derivative lawsuits filed against the company and officers.
- Q1 Net Loss was $4.65 million, down from $9.07 million net income year-over-year.
- Total revenues decreased to $70.83 million from $71.48 million year-over-year.
- Basic and diluted EPS was $(0.57) compared to $1.01 year-over-year.
- Repurchased 821,000 shares for $30 million, including a $22 million promissory note.