B. Riley Financial(US:RILY) Prnewswire·2026-01-06 14:00Core Viewpoint - Schubert Jonckheer & Kolbe LLP is investigating potential legal claims against B. Riley Financial, Inc. (now BRC Group Holdings, Inc.) due to alleged false statements regarding a $200 million loan to an entity linked to Brian Kahn, who pleaded guilty to conspiracy to commit securities fraud [1][2]. Group 1: Legal Proceedings - A U.S. District Judge ruled that key claims in a securities fraud lawsuit against B. Riley and its co-CEO Bryant Riley will proceed, alleging that the company misled investors by not disclosing a $200.5 million loan to Vintage Capital Management, LLC, controlled by Kahn [2]. - The lawsuit claims that misleading statements caused B. Riley's stock to trade at artificially inflated prices, with the stock price dropping from over $72 in March 2022 to below $6 by November 2024 after the truth about the loan was revealed [2]. Group 2: Investigations - The firm is investigating potential wrongdoing by B. Riley's directors and officers in connection with the allegations of misleading investors [3]. - The U.S. Securities and Exchange Commission has subpoenaed documents related to B. Riley's dealings with Kahn, indicating a broader investigation into the company's practices [2].