B Riley Financial Inc NASDAQ: RILY
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B. Riley (RILY) Shares Plunge Amid Write Offs and Credit Downgrades of Franchise Group - Hagens Berman
10:32 am ET November 14, 2023 (Globe Newswire) Print
HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Investigating RILY and Encourages RILY Investors Who Suffered Substantial Losses to
Contact Firm's AttorneysGlobeNewswireNovember 14, 2023
SAN FRANCISCO, Nov. 14, 2023 (GLOBE NEWSWIRE) -- Hagens Berman urges B. Riley Financial, Inc. (NASDAQ: RILY)
investors who suffered substantial losses to submit your losses now.
Visit:
www.hbsslaw.com/investor-fraud/RILY
Contact An Attorney Now:
RILY@hbsslaw.com
844-916-0895
B. Riley Financial, Inc. (NASDAQ: RILY) Investigation:
The investigation focuses on the accuracy of B. Riley's statements concerning Franchise Group ("FRG").
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, which was completed on Aug. 21, 2023.
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.
Then, on Nov. 8, 2023, B. Riley revealed that it was forced to mark down the value of its investment in FRG after the
company reported a decline in revenue and a net loss in the third quarter. That markdown resulted in B. Riley reporting a
net loss of $75.8 million in Q3 2023, compared with a profit of $45.8 million a year earlier.
Most recently, on Nov. 10, 2023, S&P Global Ratings downgraded FRG's credit rating, dropping it further down in junk
status to "B-" from "B" with a negative outlook, citing its weak performance. S&P also said it was monitoring legal
developments relating to FRG's Chief Executive Brian Kahn, who led the August take-private deal.
These events have caused the price of RILY shares to decline sharply.
"We're focused on RILY investors' losses and are investigating the propriety of B. Riley's disclosures concerning the FRG
investment and the company's relationship with Kahn," said Reed Kathrein, the Hagens Berman partner leading the
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 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-
Stocks: Profile
Closing Price
$24.28
Day's Change
0.08 (0.33%)
Bid
24.00
Ask
24.88
B/A Size
100x100
Day's High
25.22
Day's Low
22.89
Volume
1,370,498
November 15, 2023 3:59pm ET
(Light)
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