Halper Sadeh LLC Investigates B. Riley Financial Officers for Fiduciary Breaches
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 14 2026
0mins
Should l Buy RILY?
Source: Businesswire
- Investigation Background: Halper Sadeh LLC is investigating whether certain officers and directors of B. Riley Financial, Inc. (NASDAQ: RILY) breached their fiduciary duties to shareholders, potentially impacting corporate governance.
- Shareholder Rights: Long-term shareholders of RILY may seek corporate governance reforms, fund returns, or court-approved financial incentives, which could enhance shareholder value and accountability.
- Legal Fee Arrangement: The firm will handle the case on a contingent fee basis, meaning shareholders will not be responsible for out-of-pocket legal fees or expenses, thereby reducing the financial burden of participation.
- Importance of Participation: Shareholder involvement can improve company policies and oversight mechanisms, fostering transparency and accountability, which ultimately enhances management effectiveness and shareholder value.
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Analyst Views on RILY
About RILY
BRC Group Holdings, Inc., formerly B. Riley Financial, Inc., is a diversified holding company, including financial services, telecom, and retail, and investments in equity, debt and venture capital. The Company's core financial services platform provides small cap and middle market companies customized end-to-end solutions at every stage of enterprise life cycle. The Company's banking business offers comprehensive services in capital markets, sales, trading, research, merchant banking, mergers and acquisitions (M&A) and restructuring. The Company's wealth management business offers wealth management and financial planning services including brokerage, investment management, insurance and tax preparation. Its telecom businesses provide consumer and business services including traditional, mobile and cloud phone, Internet and data, security and email. The Company's retail businesses provide mobile computing accessories and home furnishings.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investigation into B. Riley Financial's Fiduciary Duties to Shareholders
- Shareholder Rights Investigation: Halper Sadeh LLC is investigating whether certain officers and directors of B. Riley Financial, Inc. breached their fiduciary duties, potentially impacting corporate governance and shareholder rights.
- Legal Relief Options: Long-term shareholders of RILY stock may seek corporate governance reforms, fund recovery, or court-approved financial incentives, thereby improving management and transparency within the company.
- Importance of Participation: Shareholder involvement can drive improvements in company policies and oversight mechanisms, enhancing transparency and accountability, which ultimately boosts shareholder value and supports long-term corporate growth.
- Global Investor Representation: Halper Sadeh LLC represents investors worldwide, focusing on combating securities fraud and corporate misconduct, having successfully implemented corporate reforms and recovered millions for defrauded investors.
See More
BRC Group Projects Significant Q4 Revenue Growth
- Revenue Expectations Rise: BRC Group anticipates Q4 2025 revenue to be approximately $271 million to $282.5 million, significantly up from $178.6 million in Q4 2024, reflecting strong performance amid market recovery.
- Net Income Rebound: Expected net income is projected to range from $60 million to $65.4 million, a substantial increase from $0.9 million in Q4 2024, indicating a notable improvement in the company's profitability and a return to financial health.
- Adjusted EBITDA Turnaround: The company forecasts adjusted EBITDA between $98.9 million and $109.4 million, a significant recovery from a loss of $(113.8) million in Q4 2024, showcasing enhanced operational efficiency and successful cost management.
- Earnings Per Share Surge: Basic and diluted earnings per share are expected to range from $1.96 to $2.14, compared to $0.03 in Q4 2024, reflecting a robust recovery in profitability and increased investor confidence.
See More
BRC Group Holdings Projects Strong Financial Estimates for 2025
- Net Income Outlook: BRC Group anticipates fourth-quarter 2025 net income available to common shareholders will range from $60 million to $65.4 million, indicating strong performance across its diversified operating platform, likely boosting investor confidence.
- Adjusted EBITDA Forecast: The company expects fourth-quarter 2025 adjusted EBITDA to be between $98.9 million and $109.4 million, reflecting successful operational efficiency and cost control measures that further solidify its market position.
- Full-Year Financial Projections: For the full year 2025, BRC estimates net income available to common shareholders will be between $274.5 million and $279.9 million, showcasing robust performance amid economic recovery, which may attract increased investor interest.
- Reduction in Net Debt: As of December 31, 2025, BRC's net debt is projected to range from $609 million to $631 million, significantly down from a peak of $1.39 billion in September 2024, indicating an improvement in the company's financial health.
See More
BRC Group Regains Nasdaq Compliance
- Compliance Restoration: BRC Group announced on Wednesday that it has received a Nasdaq letter confirming its regained compliance with the periodic filing rule, marking a significant advancement in the company's financial transparency.
- Stock Price Surge: Following the compliance announcement, BRC Group's shares rose by 1.50% in pre-market trading to $9.49, reflecting a positive market reaction to the company's outlook.
- Monitoring Measures: Nasdaq has imposed a one-year 'Mandatory Panel Monitor' on BRC Group, meaning if the company fails to meet periodic filing requirements during this period, it will not be allowed to submit a compliance plan, increasing future compliance pressure.
- Financial Context: Previously, B. Riley Financial had received a Nasdaq delinquency notice due to delays in filing financial results, and this restoration of compliance provides greater flexibility for the company's future financing and operations.
See More
BRC Group Regains Compliance with Nasdaq Rules
- Compliance Notification: On January 27, 2026, BRC Group received confirmation from Nasdaq that it has regained compliance with the Periodic Filing Rule 5250(c)(1), marking a significant advancement in the company's compliance status.
- Mandatory Monitoring: Nasdaq has imposed a one-year 'Mandatory Panel Monitor' on the company, indicating that failure to meet reporting requirements during this period could lead to severe consequences, including a potential delisting determination.
- Business Diversification: As a diversified holding company, BRC Group operates across financial services, telecom, and retail sectors, providing customized end-to-end solutions aimed at enhancing operational efficiency and market competitiveness for small and mid-sized enterprises.
- Value Creation through Investment: The company is committed to generating shareholder value through opportunistic investments by deploying capital both within and outside its core financial services platform, reflecting a proactive approach to its diversified investment strategy.
See More
BRC Group Regains Compliance with Nasdaq Rules
- Compliance Notification: On January 27, 2026, BRC Group received confirmation from Nasdaq that it has regained compliance with the Periodic Filing Rule 5250(c)(1), which is expected to enhance investor confidence and stabilize stock prices.
- Mandatory Monitoring: Nasdaq has imposed a one-year 'Mandatory Panel Monitor' on BRC, indicating that the company must maintain compliance during this period or face stricter delisting decisions, increasing pressure on management.
- Diversified Business Structure: As a diversified holding company, BRC operates across financial services, telecom, and retail, providing customized end-to-end solutions aimed at enhancing shareholder value through opportunistic investments.
- Future Outlook Risks: Despite regaining compliance, the company must remain vigilant against potential risks and uncertainties that could negatively impact its operating results and stock price, necessitating careful assessment by investors.
See More
Investigation into B. Riley Financial's Fiduciary Duties to Shareholders
- Shareholder Rights Investigation: Halper Sadeh LLC is investigating whether certain officers and directors of B. Riley Financial, Inc. breached their fiduciary duties, potentially impacting corporate governance and shareholder rights.
- Legal Relief Options: Long-term shareholders of RILY stock may seek corporate governance reforms, fund recovery, or court-approved financial incentives, thereby improving management and transparency within the company.
- Importance of Participation: Shareholder involvement can drive improvements in company policies and oversight mechanisms, enhancing transparency and accountability, which ultimately boosts shareholder value and supports long-term corporate growth.
- Global Investor Representation: Halper Sadeh LLC represents investors worldwide, focusing on combating securities fraud and corporate misconduct, having successfully implemented corporate reforms and recovered millions for defrauded investors.
See More
BRC Group Projects Significant Q4 Revenue Growth
- Revenue Expectations Rise: BRC Group anticipates Q4 2025 revenue to be approximately $271 million to $282.5 million, significantly up from $178.6 million in Q4 2024, reflecting strong performance amid market recovery.
- Net Income Rebound: Expected net income is projected to range from $60 million to $65.4 million, a substantial increase from $0.9 million in Q4 2024, indicating a notable improvement in the company's profitability and a return to financial health.
- Adjusted EBITDA Turnaround: The company forecasts adjusted EBITDA between $98.9 million and $109.4 million, a significant recovery from a loss of $(113.8) million in Q4 2024, showcasing enhanced operational efficiency and successful cost management.
- Earnings Per Share Surge: Basic and diluted earnings per share are expected to range from $1.96 to $2.14, compared to $0.03 in Q4 2024, reflecting a robust recovery in profitability and increased investor confidence.
See More
BRC Group Holdings Projects Strong Financial Estimates for 2025
- Net Income Outlook: BRC Group anticipates fourth-quarter 2025 net income available to common shareholders will range from $60 million to $65.4 million, indicating strong performance across its diversified operating platform, likely boosting investor confidence.
- Adjusted EBITDA Forecast: The company expects fourth-quarter 2025 adjusted EBITDA to be between $98.9 million and $109.4 million, reflecting successful operational efficiency and cost control measures that further solidify its market position.
- Full-Year Financial Projections: For the full year 2025, BRC estimates net income available to common shareholders will be between $274.5 million and $279.9 million, showcasing robust performance amid economic recovery, which may attract increased investor interest.
- Reduction in Net Debt: As of December 31, 2025, BRC's net debt is projected to range from $609 million to $631 million, significantly down from a peak of $1.39 billion in September 2024, indicating an improvement in the company's financial health.
See More
BRC Group Regains Nasdaq Compliance
- Compliance Restoration: BRC Group announced on Wednesday that it has received a Nasdaq letter confirming its regained compliance with the periodic filing rule, marking a significant advancement in the company's financial transparency.
- Stock Price Surge: Following the compliance announcement, BRC Group's shares rose by 1.50% in pre-market trading to $9.49, reflecting a positive market reaction to the company's outlook.
- Monitoring Measures: Nasdaq has imposed a one-year 'Mandatory Panel Monitor' on BRC Group, meaning if the company fails to meet periodic filing requirements during this period, it will not be allowed to submit a compliance plan, increasing future compliance pressure.
- Financial Context: Previously, B. Riley Financial had received a Nasdaq delinquency notice due to delays in filing financial results, and this restoration of compliance provides greater flexibility for the company's future financing and operations.
See More
BRC Group Regains Compliance with Nasdaq Rules
- Compliance Notification: On January 27, 2026, BRC Group received confirmation from Nasdaq that it has regained compliance with the Periodic Filing Rule 5250(c)(1), marking a significant advancement in the company's compliance status.
- Mandatory Monitoring: Nasdaq has imposed a one-year 'Mandatory Panel Monitor' on the company, indicating that failure to meet reporting requirements during this period could lead to severe consequences, including a potential delisting determination.
- Business Diversification: As a diversified holding company, BRC Group operates across financial services, telecom, and retail sectors, providing customized end-to-end solutions aimed at enhancing operational efficiency and market competitiveness for small and mid-sized enterprises.
- Value Creation through Investment: The company is committed to generating shareholder value through opportunistic investments by deploying capital both within and outside its core financial services platform, reflecting a proactive approach to its diversified investment strategy.
See More
BRC Group Regains Compliance with Nasdaq Rules
- Compliance Notification: On January 27, 2026, BRC Group received confirmation from Nasdaq that it has regained compliance with the Periodic Filing Rule 5250(c)(1), which is expected to enhance investor confidence and stabilize stock prices.
- Mandatory Monitoring: Nasdaq has imposed a one-year 'Mandatory Panel Monitor' on BRC, indicating that the company must maintain compliance during this period or face stricter delisting decisions, increasing pressure on management.
- Diversified Business Structure: As a diversified holding company, BRC operates across financial services, telecom, and retail, providing customized end-to-end solutions aimed at enhancing shareholder value through opportunistic investments.
- Future Outlook Risks: Despite regaining compliance, the company must remain vigilant against potential risks and uncertainties that could negatively impact its operating results and stock price, necessitating careful assessment by investors.
See More
