B. Riley Financial, founder received subpoenas in November from SEC

In a regulatory filing, B. Riley Financial (RILY) said that the company and Chairman and co-founder Bryant Riley each received additional subpoenas in November from the SEC “requesting the production of certain additional documents and information relating to Franchise Group, Inc., including its holding company, Freedom VCM Holdings, LLC, as well as Mr. Riley’s personal loan and his pledge of shares of the company’s common stock as collateral for such loan. As previously disclosed on April 23, 2024, the Audit Committee of the company’s Board of Directors, with the assistance of Sullivan & Cromwell LLP, the company’s legal counsel, conducted an internal review, and separately the Audit Committee retained Winston & Strawn LLP, independent legal counsel, to conduct an independent investigation, to review transactions among Mr. Kahn and the company. The review and the investigation both confirmed that the company and its executives, including Mr. Riley, had no involvement with, or knowledge of, any alleged misconduct concerning Mr. Kahn or any of his affiliates. The receipt of subpoenas is not an indication that the SEC or its staff has determined that any violations of law have occurred. Both the company and Mr. Riley are responding to the subpoenas and are fully cooperating with the SEC.”