Robbins LLP reminds investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired B. Riley Financial, Inc. (NASDAQ: RILY) stock between May 10, 2023 and November 9, 2023. B. Riley is a financial services platform. The Company, through its subsidiaries, provides services including, investment banking, brokerage, wealth management, asset management, direct lending, business advisory, valuation, and asset disposition.

For more information, submit a form, email Aaron Dumas, Jr., or give us a call at (800) 350-6003.

What is this Case About: B. Riley Financial, Inc. (RILY) Misled Investors Regarding its Business Prospects

According to the complaint, during the class period, defendants 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, in spite of this involvement, B. Riley continued to finance the transaction enabling Kahn and others to take FRG private through complex arrangements; and (3) that the foregoing was reasonably likely to draw regulatory scrutiny to B. Riley.

Plaintiff alleges that in May 2023, B. Riley entered into an agreement to assist Kahn, CEO of Franchise Group, Inc., in leading a management buyout of FRG. The $2.8 billion deal to take FRG private was completed on August 21, 2023. The transaction was partially financed by Nomura Holdings Inc. via B. Riley, who secured the financing allowing Kahn and other senior management of FRG to acquire the remaining 64% stake that they did not already own.

On November 2, 2023, Kahn was implicated as an unnamed coconspirator in a conspiracy to defraud investors of $294 million in funds. On this news, the Company’s stock price dropped $9.02, or 22%, to close at $32.54 per share on November 6, 2023.

On November 9, 2023, after the market closed, the Company revealed significant details concerning the FRG transaction and the years-long series of complex financial transactions between B. Riley, Kahn, and the Company’s respective subsidiaries, which culminated in the August 21, 2023 transaction. On this news, the Company’s stock price fell $4.47, or 15%, to close at $25.60 per share on November 10, 2023. The Company’s stock price continued to fall 14% over the next consecutive trading session to close at $22.01 per share on November 13, 2023.

What Now: Similarly situated shareholders may be eligible to participate in the class action against B. Riley Financial, Inc. Shareholders who want to act as lead plaintiff for the class should contact Robbins LLP. Plaintiffs must file their lead plaintiff papers by March 25, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.

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