Why Is B. Riley Financial (RILY) Stock Down 11% Today?


  • B. Riley Financial (RILY) stock is down Monday alongside SEC probe reports.
  • The company has denied that it is facing an SEC probe.
  • Even so, shares are falling as investors grow wary of the stock.
RILY Stock - Why Is B. Riley Financial (RILY) Stock Down 11% Today?

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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.

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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.

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