B. Riley Financial Says Unaware Of SEC Probe As Stock Dips On Bloomberg Report

(RTTNews) - Shares of B. Riley Financial, Inc. (RILY) were losing more than 14 percent in the pre-market activity on Nasdaq following a Bloomberg News article about a possible SEC investigation.

Responding to the news article, the company now said it is not aware of any such SEC investigation, and that in the event one were to materialize, would cooperate fully with it.

The Bloomberg had reported that US authorities are investigating B. Riley's deals with a key client who was linked to a securities fraud, as well as the use of his assets to help the investment bank obtain a loan from Nomura Holdings Inc.

According to the diversified financial services platform, "a reporter from Bloomberg News made inquiry with B. Riley Financial about a possible SEC investigation, parroting baseless allegations that have been publicly made for months by short sellers intent on harming the Firm and upon which the article notes the SEC declined to comment."

In November 2023, when it first learned of the Prophecy investigation, B. Riley Financial had stated that it had no involvement with, or knowledge of, any of those matters. The company says short sellers continue to disseminate false information for their own profit to the detriment of the Firm's clients and customers.

In pre-market activity on Nasdaq, B. Riley Financial shares were trading at $17.25, down 14.52%.