B. Riley (NASDAQ: RILY) experienced a significant 21.8% surge pre-market after the company released the findings of an independent investigation. The probe, conducted by Winston & Strawn, concluded that neither B. Riley nor its executives were involved or possessed knowledge of any suspected misconduct related to Brian Kahn. The independent review’s conclusions aligned with a prior internal investigation led by Sullivan & Cromwell. In addition to the investigation update, B. Riley reported its financial results for the year ended December. It’s noteworthy that last month, the boutique investment bank had obtained an extension for delaying the filing of its 2023 audited financial statements under its existing credit agreement with Nomura. Previous reports had raised concerns about Kahn’s role in a buyout of Franchise Group, a transaction facilitated by B. Riley in January. Additionally, a report in January indicated that Kahn was stepping down as CEO of Franchise Group months after B. Riley’s involvement in the leveraged buyout. Furthermore, Bloomberg reported that the Securities and Exchange Commission is investigating B. Riley’s (RILY) dealings with a client linked to alleged securities fraud.
B. Riley Jumps 21.8% on Independent Investigation’s Exoneration
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