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B. Riley (RILY) Down 53% Year-to-Date Amid Securities Class Action And SEC Investigation Into Ties With Client Allegedly Linked To Securities Fraud - Hagens Berman
Globe Newswire 8-Feb-2024 10:01 AM
SAN FRANCISCO, Feb. 08, 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) Securities Fraud Class Action:
On Jan. 22, 2023, B. Riley shares dropped further news that Brian Kahn was stepping down as CEO of Franchise Group ("FRG"), just months after B. Riley assisted him with a leveraged buyout of the firm.
Kahn's departure followed reports from media outlets that the SEC is investigating B. Riley and its relationship with Kahn.
In Aug. 2023, B. Riley assisted Kahn, the then-CEO of FRG, in the $2.8 billion management-led buyout of FRG. B. Riley reportedly invested $216.5 million in an equity financing to facilitate the transaction.
B. Riley's shares have been in tailspin since early November, when Bloomberg reported that Kahn is an unidentified co-conspirator in a Justice Department criminal case prompted by the 2020 demise of the Prophecy Asset Management hedge fund.
In addition to a potential regulatory probe, B. Riley also faces a pending securities class action. The complaint there alleges B. Riley misrepresented and failed to disclose to investors: (1) that Brian Kahn had been credibly implicated in a conspiracy to defraud investors of millions of dollars; (2) that, despite this involvement, B. Riley continued to finance the transaction enabling Kahn and others to take FRG private through complex arrangements; and (3) the foregoing was reasonably likely to draw regulatory scrutiny to B. Riley.
B. Riley shares have plummeted 53% since the Nov. Bloomberg report.
"We're investigating whether B. Riley made adequate disclosures concerning the FRG investment and the company's relationship with Kahn," said Reed Kathrein, the Hagens Berman partner leading the B. Riley investigation.
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 case and our 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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