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September 22, 2008

Floorman, Dancers, and Waitresses for Minneapolis Adult Entertainment Club File Amended Class Action Complaint

A former floorman and several former waitresses and dancers have filed an amended class action complaint against Schiek’s Palace Royale (Schiek’s), a live adult entertainment club in Minneapolis, owned and operated by VCG Holding Corp. (NASDAQ VCGH). Among the complaints, the plaintiffs allege that although Schiek’s charged patrons $22 for “twenty dance dollars”, plaintiffs only received $18 in exchange and dance dollars expired after fourteen days. Also, the waitresses and entertainers allege they were required to hand out free admission passes before reporting to work and were not compensated for their time doing so. The waitresses and dancers also allege that they were not compensated for time “spent working to meet Defendant’s appearance standards.” They further allege that they were required to pay for uniforms and other clothing of a “sexually provocative” nature, which “were not suitable for use on other occasions.” Waitresses were also allegedly required to pay if a patron left without paying, an incorrect bottle of liquor was served, or food was dropped. They allege that they did not consent to these deductions in writing and charges sometimes resulted in their being paid less than the Minnesota minimum wage.

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