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RILY.US
id: 924
B. Riley (RILY) FRG's Deal Case
C.D. California
Court2:24-cv-00662
Case number10 May 2023
Class period Start09 Nov 2023
Class period End25 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