B. Riley Financial, Inc. (NASDAQ: RILY)

This lawsuit is for anyone who acquired securities in B. Riley Financial, Inc. (NASDAQ: RILY) from May 10, 2023 through November 9, 2023.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by telling investors that the Company had proper controls in place to assure that the Company would use due diligence in determining with whom to do business but then by providing financing for a Company engaged in a securities fraud.

On November 2, 2023, Bloomberg reported that Brian Kahn, the CEO of Franchise Group Inc. (“FRG”) had been identified by a “persons familiar with the matter” as a co-conspirator of John Hughes, who recently pleaded guilty to conspiracy to commit securities fraud. On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on November 8, 2023, B. Riley executives stated during the Company’s third quarter earnings call that “[d]uring the quarter, we announced our role leading the financing of FRG’s $2 billion take-private transaction” and that “B. Riley’s business is much more than just FRG and to the extent to which we have ever needed to work to protect the firm’s interest and that of our investment partners, we have and always will.” On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in B. Riley Financial, Inc. (NASDAQ: RILY) from May 10, 2023 through November 9, 2023 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.