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B. Riley (RILY) Shares Fall After Reports of SEC Investigation Into Ties With Client Allegedly Linked To Securities Fraud - Hagens Berman
Globe Newswire 22-Jan-2024 6:47 PM
SAN FRANCISCO, Jan. 22, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges B. Riley Financial, Inc. (NASDAQ:RILY) investors who suffered substantial losses to submit your losses now.
B. Riley Financial, Inc. (NASDAQ:RILY) Investigation:
"We are investigating the accuracy of B. Riley's statements concerning its funding, Franchise Group ("FRG") and knowledge of Brian Kahn's alleged activities," said Reed Kathrein, the Hagens Berman partner leading the firm's investigation.
On Jan. 21, 2024, Reuters reported that "U.S. authorities are investigating B. Riley's deals with a client who was linked to a securities fraud, and the use of his assets to help the investment bank obtain a loan from Nomura Holdings[.]" The report also said, "[t]he SEC has carried out interviews in recent months about B. Riley and its relationship with Brian Kahn[,]" and "SEC officials have been scrutinizing how Kahn led a buyout of Vitamin Shoppe owner Franchise Group last year in a deal arranged by B. Riley[.]" Reuters added that "Nomura partly financed the transaction, with some of Kahn's assets pledged as collateral."
Beforehand, on Aug. 28, 2023, B. Riley announced it invested $216.5 million in an equity financing to facilitate the $2.8 billion management-led acquisition of FRG, a formerly public company controlled by Brian Kahn.
Questions about B. Riley's FRG investment began to arise on Nov. 2, 2023, when the DOJ announced that co-founder of hedge fund Prophecy Asset Management John Hughes had pled guilty to conspiring to defraud dozens of victim investors out of $294 million. Bloomberg later reported that FRG's CEO Brian Kahn is one of two co-conspirators and Reuters reported that Hughes named Kahn as a co-conspirator.
In the aftermath, B. Riley has marked down the value of its investment in FRG, and the price of RILY shares have declined.
If you invested in B. Riley and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »
If you'd like more information and answers to frequently asked questions about the B. Riley investigation, read more »
Whistleblowers: Persons with non-public information regarding B. Riley should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email RILY@hbsslaw.com.
About Hagens Berman Hagens Berman is a global plaintiffs' rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
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