B. Riley Financial Under Investigation for Potential Securities Fraud

Multiple Class Action Lawsuits Filed as Company's Relationship with Brian Kahn Draws Regulatory Scrutiny

B. Riley Financial is under investigation for potential securities fraud and other unlawful business practices, with several law firms filing class action lawsuits on behalf of investors.
The U.S. Securities and Exchange Commission has conducted interviews regarding B. Riley's relationship with Brian Kahn, an unidentified co-conspirator in a US Department of Justice criminal case.
The allegations suggest that despite Kahn's involvement in a conspiracy to defraud investors, B. Riley continued to finance transactions enabling Kahn and others to take Franchise Group, Inc. private through complex arrangements.
This activity is likely to draw regulatory scrutiny to B. Riley, and the company's stock price has already fallen as a result of the news.
Investors who purchased B. Riley securities between May 10, 2023, and November 9, 2023, may be entitled to compensation and have until March 25, 2024, to apply to the court to be appointed as lead plaintiff in the lawsuit.