NEW YORK, Sept. 10, 2013 /PRNewswire/ -- Rick's
Cabaret International, Inc. (NasdaqGM:RICK), the publicly
traded hospitality company whose subsidiaries own more than 40
gentlemen's clubs and restaurant venues nationwide, said today it
was pleased a federal judge did not find the parent company liable
in a ruling that maintains entertainers who filed a class action
suit should be treated as employees.
(Logo:
http://photos.prnewswire.com/prnh/20110418/MM85342LOGO)
The ruling was handed down today by federal judge
Paul A. Engelmayer of the
Southern District of New York and
addressed a lawsuit brought by several former dancers at the club
against Peregrine Enterprises, the subsidiary that operates the
New York City club, and the
Houston-based parent company. The
ruling denied the dancers' attempt to hold the parent company
liable.
Eric Langan, president and
CEO of Rick's Cabaret International, Inc. said: "In practice,
this ruling has no impact on the operations of Rick's Cabaret/NYC
since we changed our independent contractor practices some time ago
and the court denied the plaintiffs' attempts to hold the parent
company liable. Nonetheless, we are disappointed with the
ruling and intend to appeal. It is hard to imagine how these
entertainers should be paid at the minimum wage, which would amount
to a fraction of the $1,000 or more
that some of them acknowledged they earned in a single night.
Additionally, the court did not rule on the issue of whether the
substantial amounts entertainers earned are wages under
New York State Labor Law."
The attorney representing Rick's Cabaret International and
Peregrine, Jeffrey A. Kimmel
of the firm of Meister Seelig
& Fein LLP, said: "We disagree with the decision and intend
to appeal. Additionally there are significant remaining
issues that were not addressed on these motions, including whether
the substantial amounts earned by the plaintiffs can be deemed
wages under New York State Law and
therefore be applied against any claimed minimum wage
obligations. Based on recent developments in the law we
also intend to move the court to decertify the class and we are
optimistic that the class will be decertified."
About Rick's Cabaret: Rick's Cabaret International, Inc.
(NASDAQ: RICK) is home to upscale adult nightclubs serving
primarily businessmen and professionals that offer live
entertainment, dining and bar operations. Nightclubs in
New York City, Miami, Philadelphia, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis, Indianapolis and other cities are named
"Rick's Cabaret," "XTC," "Club Onyx" and "Tootsie's Cabaret" and
other brand names. Sexual contact is not permitted at any
locations. Rick's Cabaret also operates a media division, ED
Publications. Rick's Cabaret common stock is traded on NASDAQ under
the symbol RICK. For further information contact ir@ricks.com or
visit www.ricksinvestor.com. Twitter: @rickscabaret; Facebook:
http://www.facebook.com/rickscabaretintl.
Forward-looking Statements: This press release may
contain forward-looking statements that involve a number of risks
and uncertainties that could cause the company's actual results to
differ materially from those indicated in this press release,
including the risks and uncertainties associated with operating and
managing an adult business, the business climates in cities where
it operates, the success or lack thereof in launching and building
the company's businesses, risks and uncertainties related to the
operational and financial results of our Web sites, conditions
relevant to real estate transactions, and numerous other factors
such as laws governing the operation of adult entertainment
businesses, competition and dependence on key personnel. Rick's has
no obligation to update or revise the forward-looking statements to
reflect the occurrence of future events or circumstances. For
further information visit www.ricksinvestor.com.
SOURCE Rick's Cabaret International, Inc.