1. Moore Law is investigating claims against B. Riley Financial, Inc. (RILY). 2. Investors prior to May 2023 may have grounds for legal action. 3. Concerns arise over undisclosed fraud and misleading company statements. 4. RILY's stock has lost over 70% value in the past year. 5. The investigation could invite regulatory scrutiny toward B. Riley.
Legal investigations can severely damage investor confidence, as seen with other financial firms. For instance, similar scrutiny led to significant dips for companies like Wells Fargo.
This investigation directly concerns RILY's prior activities and substantial financial implications. Ongoing investor suits and negative press create systemic risk to its stock price.
Immediate legal scrutiny may result in stock volatility and investor backlash within months. Past issues have often led to quick erosion of stock value in the financial sector.
/PRNewswire/ -- Moore Law, PLLC, a securities and shareholder law firm located on Wall Street, is investigating potential claims against:
Investors who purchased shares of B. Riley Financial, Inc. (NASDAQ: RILY) prior to May 2023 and continue to hold any of those shares should contact info@fmoorelaw.com.
Franchise Group, Inc. ("FRG") is a holding company which acquires and manages companies, primarily franchises. FRG is a client of B. Riley Financial, Inc.
In May 2023, B. Riley Financial, Inc. entered into an agreement to assist the CEO of FRG in leading a management buyout of FRG. The $2.8 billion deal was completed on August 21, 2023.
The investigations concerns a failure to disclose to investors that Brian Kahn had been credibly implicated in a conspiracy to defraud investors of millions of dollars, that, in spite of this involvement, B. Riley continued to finance the transaction enabling Kahn and others to take FRG private through complex arrangements, that the foregoing was reasonably likely to draw regulatory scrutiny to B. Riley, and that, 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. Over the last 12 months, RILY stock is down over 70%.
If you own B. RILEY FINANCIAL, INC. (NASDAQ: RILY) shares, you are encouraged to contact us at info@fmoorelaw.com or call (212) 709-8245. You may be able to seek monetary damages, corporate governance reforms, reimbursement to the company, and a court-approved incentive award at no cost to you whatsoever.
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