B. Riley Board Beats Suit Over FRG Collapse: Delaware Brief

B. Riley Board Beats Suit Over FRG Collapse

Photographer: Michael Nagle/Bloomberg

Bryant Riley and other leaders of his investment bank prevailed against litigation blaming them for losses tied to the bankruptcy of Franchise Group, founded by a friend of Riley’s with links to a fraud scandal, Mike Leonard and Gillian R. Brassil report.

A Delaware Chancery Court judge rejected claims that the former B. Riley Financial Inc. board turned a blind eye to red flags about Brian Kahn, a Prophecy Asset Management founder later described in court filings and news reports as a co-conspirator involved in securities fraud there. The idea that ...