The SEC Expands its Investigation Into B. Riley for Financial Irregularities. The Stock Plummets 50% as the Wall Street Firm Suspends Dividend Payments.
The SEC has widened its probe into B. Riley's financial irregularities and is asking short sellers for additional materials about loans B. Riley may have guaranteed for its former business partner, Brian Kahn. B. Riley's stock dropped more than 50% on Monday after the company suspended its dividend and warned of a share loss for the second quarter. It partly blamed weak consumer spending and a writedown of its stake in Franchise Group. SEC investigators are probing whether B. Riley accurately disclosed risks related to loans to Franchise Group and possible improper insider trading.
Transcript
00:00It's Benzinga, and here's what's on the block.
00:02The SEC has widened its probe into B. Reilly's financials and is asking short sellers for
00:07additional materials about loans B. Reilly may have guaranteed for its former business
00:11partner Brian Kahn.
00:13B. Reilly's stock dropped more than 50% on Monday after the company suspended its dividend
00:17and warned of a share loss for the second quarter.
00:20It partly blamed weak consumer spending and a write-down of its stake in Franchise Group.
00:25SEC investigators are probing whether B. Reilly accurately disclosed risks related to loans
00:30to Franchise Group and possible improper trading by insurers.
00:33For all things money, visit Benzinga.com.