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RILY.US

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
  • $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.
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
Collecting participants…
Created by Stan Vick, Scout

B. Riley Financial Inc

B. Riley Financial, Inc., through its subsidiaries, provides financial services to corporate, institutional, and high net worth clients in North America, Australia, and Europe. The company operates...

    Ticker
    RILY.US
    ISIN
    US05580M1080
    CIK
    1464790
    Sector
    Financial Services
    Industry
    Financial Conglomerates
    Country
    USA
    Address
    11100 Santa Monica Blvd., Los Angeles, CA, United States, 90025