(MENAFN- GlobeNewsWire - Nasdaq) HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages RILY Investors Who Suffered Substantial Losses to Contact Firm's Attorneys
SAN FRANCISCO, Feb. 19, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges B. Riley Financial, Inc. (NASDAQ: RILY) investors who suffered substantial losses to submit your losses now .
Class Period: May 10, 2023 – Nov. 9, 2023
Lead Plaintiff Deadline: Mar. 25, 2024
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B. Riley Financial, Inc. (NASDAQ: RILY) Securities Fraud Class Action:
The accuracy of B. Riley's disclosures about its involvement in a client's (Franchise Group or“FRG”) Aug. 21, 2023 $2.8 billion take-private transaction and its arrangements with FRG's now former CEO (Brian Kahn) has again come into question.
Specifically, on Feb. 12, 2024, after the market closed, The Wall Street Journal published an article entitled“Unraveling the Money Trail at B. Riley Financial.” In it, the WSJ observed that, in an Aug. 28, 2023 press release, B. Riley said it invested $216.5 million of new capital in the FRG transaction in contrast to the company's later Nov. 9, 2023 disclosure that it actually invested $281.1 million in the transaction. The WSJ“followed the crumbs” and attributed B. Riley's approximate $64 million investment understatement on Aug. 28 to its undisclosed purchase of management rollover shares primarily from Kahn before it upped its investment to $281.1 million.
The WSJ report comes on the heels of a securities fraud class action complaint, which alleges B. Riley misrepresented and failed to disclose to investors: (1) that 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.
The Feb. 12 news also follows (1) Bloomberg's early Nov. 2023 report 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, (2) Jan. 22, 2023 news that Kahn was stepping down as CEO of FRG, just months after B. Riley assisted him with the FRG buyout, and (3) reports from media outlets that the SEC is investigating B. Riley and its relationship with Kahn.
B. Riley's shares have been in tailspin since Bloomberg first broke the news about Kahn last November.
“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 ... .
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 . Follow the firm for updates and news at @ClassActionLaw .
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Contact:
Reed Kathrein, 844-916-0895
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