Structured Product Fraud Lawyers

Shepherd Smith Edwards and Kantas Is Investigating B Riley Investment Losses. Our Structured Product Fraud Lawyers Speaking To Investors To Explore Their Legal Options

If you are an investor who sustained losses in a B Riley Financial-issued investment that was marketed and sold to you by your financial advisor, contact Shepherd Smith Edwards and Kantas Structured Product Fraud Lawyers (investorlawyers.com) today. We are looking into the following investments:

NASDAQ: RILY
NASDAQ: RILYP
NASDAQ: RILYL
NASDAQ: RILYM (Senior Notes due 2025)
NASDAQ: RILYG (5% Senior Notes due 2026)
NASDAQ: RILYK (5.5% Senior Notes due 2026)
NASDAQ: RILYN (6.5% Senior Notes due 2026)
NASDAQ: RILYZ (5.25% Senior Notes due 2028)
NASDAQ: RILYT (6% Senior Notes due 2028)

In August, B Riley Financial disclosed that it expected a net loss of $435M to $475M for the quarter ending in June 2024. That’s $14-$15 per diluted loss/share. B Riley’s (NASDAQ: RILY) stock then went down by more than 50% at $8.54/share. A few days later, it went down to $5.04/share.

Also in August, the Securities and Exchange Commission (SEC) broadened its investigation into allegations of financial irregularities involving B Riley, which suspended dividends. The regulator is interested in loans that the financial firm may have guaranteed Brian Kahn, an ex-business partner who is reportedly connected to Prophecy Asset Management. That now-defunct investment firm allegedly hid losses experienced by Kahn, who denies any wrongdoing and has not been criminally charged.

Meanwhile, Bloomberg reported that the Commission is looking into whether B Riley accurately revealed the risks of loans made to Franchise Group, of which Kahn was CEO, as well as any alleged insider trading. Earlier this month, Franchise Group filed for Chapter 11 Bankruptcy protection. Following the announcement, B Riley’s share price dropped by 13%.

How Can Our Structured Product Loss Attorneys Help?

Shepherd Smith Edwards and Kantas Structured Product Fraud Lawyers are looking into claims of losses by investors to assess whether their broker unsuitably recommended these high-risk investments, conducted the proper due diligence into the structured products and whether/not they were appropriate for a customer before marketing to them, or engaged in some other type of fraud or misconduct.

Structured products are market-linked derivative investments that can be complex, illiquid, vulnerable to market volatility, and lacking in transparency. Read here to find out more.

Broker-dealers can earn high commissions and fees from selling structured products. This can compel some of them to disregard an investor’s interests by marketing and selling them these alternative investments even when it isn’t appropriate. Structured products are generally unsuitable for retail investors, conservative retirees, and inexperienced investors, and losses can be significant especially as there is the risk of losing all or the majority of one’s principal investment.

Yes, there can be significant benefits as well, including enhanced returns, for accredited investors who have the sophistication and asset levels to weather the risks. But even experienced investors and rich investors can sustain serious losses especially when the structured product is in trouble.

Shepherd Smith Edwards and Kantas represents structured product investors in pursuing the damages they were owed by broker-dealers and investment advisers. This is not the kind of legal claim you want to pursue without a seasoned securities law firm representing you.

Over the decades our structured product fraud attorneys have helped thousands of investors to obtain full or partial financial recovery from liable financial advisors in mediation, arbitration, and litigation.

Schedule Your Consultation With Our Structured Product Fraud Lawyers: 

Contact us online or call (800) 259-9010 to schedule your initial case assessment. This is a free first consultation. If we decide to work together, you will only pay for our legal services if we obtain financial recovery for you, which is where the money would come from and not directly out of your own pocket.