B. Riley (RILY) FRG's Deal Case

C.D. California

Court

2:24-cv-00662

Case number

10 May 2023

Class period Start

09 Nov 2023

Class period End

25 Mar 2024

Lead Plaintiff motion deadline

$RILY stockholder filed a claim vs. B. Riley for hiding Brian Kahn's role in a fraud scheme and continuing to finance despite this. 
The truth surfacing caused $RILY to fall 22%, losing $275M+ shareholder value.
In May 2023, B. Riley agreed to help Brian Kahn lead a $2.8B management buyout of FRG, completing the deal on August 21, 2023.

On November 2, 2023, Brian Kahn was implicated as an unnamed co-conspirator in a $294M fraud scheme. 

The next day, The Friendly Bear's tweet raised doubts about B. Riley's knowledge of Kahn's involvement in the fraud scheme, causing a 22% drop in the $RILY on November 6, 2023. 

On November 9, 2023, $RILY disclosed details of complex financial transactions, leading to another stock price decline.

Based on these events, $RILY stockholder filed a claim against B. Riley and its leaders:
B. Riley is accused of withholding information about Brian Kahn's involvement in a fraud conspiracy. 
And that they also continued financing the transaction despite Kahn's implication, involving complex arrangements to take FRG private.
Considering all the representations, investors have reasons to suspect that B. Riley concealed Brian Kahn's involvement in a fraud conspiracy.

Case Status

Lead Plaintiff Appointed

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

06 November 2023

Filing date

24 January 2024

Lead Plaintiff Deadline

25 March 2024

Judge

Hon. Sherilyn Peace Garnett

B. Riley (RILY) FRG's Deal Case

Collecting participants…