BOSTON, Feb. 05, 2024 (GLOBE NEWSWIRE) -- A class action lawsuit has been filed against B. Riley Financial, Inc. (NASDAQ: RILY) for securities law violations. Investors who purchased shares and have lost money are encouraged to contact the firm to learn more about how they might recover those losses. For more details, visit https://www.blockleviton.com/cases/rily.
What is this all about?
The lawsuit alleges that in May 2023, B. Riley entered into an agreement to assist client Brian Kahn in leading a management buyout of Franchise Group, Inc. (“FRG”). The transaction was partially financed by Nomura Holdings, Inc., and allowed Kahn and other senior managers of Franchise Group to acquire the remaining 64% stake that they did not own. It is alleged that on November 2, 2023, Kahn was implicated as an unnamed coconspirator in a conspiracy to defraud investors of $294 million in funds.
Throughout the Class Period, it is alleged that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants allegedly failed to disclose to investors: (1) that Brian Kahn had been credibly implicated in a conspiracy to defraud investors of millions of dollars; (2) that, in spite of this involvement, B. Riley continued to finance the transaction enabling Kahn and others to take FRG private through complex arrangements; (3) that the foregoing was reasonably likely to draw regulatory scrutiny to B. Riley; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Who is eligible?
Anyone who purchased B. Riley Financial, Inc. stock between May 10, 2023 and November 9, 2023, and has lost money may be eligible, whether or not they have sold their investment. Investors should contact Block & Leviton to learn more.
Any B. Riley Financial investor should contact us for more information.
What should you do next?
The deadline to seek appointment as lead plaintiff is March 25, 2024. A class has not yet been certified, and until a certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
If you've lost money on your investment, you should contact Block & Leviton to learn more via our case website, by email at cases@blockleviton.com, or by phone at (617) 398-5600.
Why should you contact Block & Leviton?
Block & Leviton is widely regarded as one of the leading securities class action firms in the country. Our attorneys have recovered billions of dollars for defrauded investors and are dedicated to obtaining significant recoveries on behalf of our clients through active litigation in the federal courts across the country. Many of the nation's top institutional investors hire us to represent their interests. You can learn more about us at our website, www.blockleviton.com, or call (617) 398-5600 or email cases@blockleviton.com with any questions.
This notice may constitute attorney advertising.
CONTACT:
BLOCK & LEVITON LLP
260 Franklin St., Suite 1860
Boston, MA 02110
Phone: (617) 398-5600
Email: cases@blockleviton.com
SOURCE: Block & Leviton LLP
www.blockleviton.com
