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Johnson Fistel LLP Investigates B. Riley Financial Directors and Officers for Breach of Fiduciary Duties and Encourages Shareholders to Reach Out for Their Options
Globe Newswire 2-Oct-2024 1:44 PM
SAN DIEGO, Oct. 02, 2024 (GLOBE NEWSWIRE) -- Johnson Fistel, LLP (www.johnsonfistel.com), a shareholder rights law firm, announces its continuing investigation of whether certain directors and officers of B. Riley Financial, Inc. (NASDAQ:RILY) breached their fiduciary duties to the company and its shareholders.
What can I do? If you are a current shareholder, you may have legal claims that may be brought on behalf of the company, against B. Riley's directors and officers. If you wish to discuss this notice or your legal rights, please contact lead analyst Jim Baker (jimb@johnsonfistel.com) at 619-814-4471. If emailing, please include a phone number.
What is this about? Recently a class action was filed against the company. The Complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (i) Defendants knew or were reckless in not knowing that Kahn and/or one or more of his controlled entities were engaged in illicit business activities; (ii) Kahn had been credibly implicated in a conspiracy to defraud investors of millions of dollars; (iii) in spite of all the foregoing, B. Riley continued to finance the transaction enabling Kahn and others to take FRG private through complex arrangements; (iv) the foregoing was reasonably likely to draw regulatory scrutiny to B. Riley; and (v) as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Then on August 12, 2024, the company received a subpoena from the SEC due to the company's connection with Brian Kahn. Following this news, the company's stock price plummeted. Then on August 19, 2024, Riley made an unsolicited offer to take the bank private for $7 apiece, valuing it at $212 million, and pushing the stock up 16%.
Johnson Fistel LLP's investigation seeks to determine whether the company's senior officers or members of its board of directors harmed the company by breaching their fiduciary duties or otherwise violating securities laws in connection with the foregoing alleged conduct.
About Johnson Fistel, LLP: Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, Georgia, and Colorado. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes. Services may be performed by attorneys in any of our offices.
Attorney advertising. Past results do not guarantee future outcomes. Services may be performed by attorneys in any of our offices.
Johnson Fistel, LLP has paid for the dissemination of this promotional communication, and Frank J. Johnson is the attorney responsible for its content.
Contact: Johnson Fistel, LLP 501 W. Broadway, Suite 800, San Diego, CA 92101 James Baker, Investor Relations or Frank J. Johnson, Esq., (619) 814-4471 jimb@johnsonfistel.com or fjohnson@johnsonfistel.com
