B. Riley Financial (NASDAQ:RILY) stock is falling on Monday after the company addressed recent reports of a probe from the Securities and Exchange Commission (SEC).
According to recent reports, B. Riley Financial has been involved in an SEC probe concerning its relationship with Brian Kahn. This is tied to a criminal case from the Department of Justice over his role in the fall of the Prophecy Asset Management hedge fund in 2020.
However, B. Riley Financial denies that it’s part of any SEC probe. A statement from the company says the following:
“B. Riley Financial is not aware of any such SEC investigation regarding any of these matters and, in the event one were to materialize, would cooperate fully with it. As B. Riley stated in November 2023 when it first learned of the Prophecy investigation, B. Riley Financial had no involvement with, or knowledge of, any of those matters.”
How This Affects RILY Stock
Despite B. Riley Financial’s statement, investors are still wary of the stock on Monday. That’s dragging down the stock’s price in reaction to the alleged SEC probe news.
RILY stock is down 10.9% as of Monday morning, with some 160,000 shares traded. Its daily average trading volume is about 1.4 million shares.
Investors seeking out even more of the latest stock market stories will want to stick around!
We have all of the hottest stock market news that traders need to know about on Monday! A few examples include what has shares of Coherus BioSciences (NASDAQ:CHRS) and MSP Recovery (NASDAQ:LIFW) stock up today and a look at the biggest pre-market stock movers this morning. You can read all about these matters at the following links!
More Monday Stock Market News
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
