B. Riley Financial, Inc. (NASDAQ: RILY) Investor Alert: Schubert Jonckheer Investigating Possible False Claims, Undisclosed $200 Million Related-Party Loan

Schubert Jonckheer & Kolbe LLP advises B. Riley Financial, Inc. (NASDAQ: RILY) (now BRC Group Holdings, Inc.) investors that the firm is investigating potential legal claims arising from alleged false statements about a $200 million loan to an entity affiliated with Brian Kahn, who pleaded guilty in December 2025 to conspiracy to commit securities fraud in a different matter. Current shareholders are encouraged to fill out the form below.

On December 12, 2025, U.S. District Judge Sherilyn Peace Garnett ruled that key claims in a securities fraud lawsuit against B. Riley and its co-CEO Bryant Riley will move forward. The lawsuit alleges that between February 2022 and November 2024, the company misled investors by failing to disclose a $200.5 million loan it made to Vintage Capital Management, LLC, an entity controlled by Kahn. These statements allegedly caused B. Riley’s stock to trade at artificially inflated prices. Judge Garnett found the complaint sufficiently alleged that false and misleading statements about the loan were made with an intent to defraud. After the full truth came out by November 2024 regarding the loan and B. Riley’s exposure to Kahn-related entities, B. Riley’s stock traded below $6 per share, down from a March 2022 high of over $72. The U.S. Securities and Exchange Commission has subpoenaed documents regarding the company’s dealings with Kahn.

We are investigating potential wrongdoing by B. Riley’s directors and officers in connection with these allegations.

If you own B. Riley stock and wish to obtain additional information about your legal rights, please fill out the form below.