FRG Lawyers Too Conflicted for Bankruptcy, US Trustee Argues (1)

The powerful law firm helping Franchise Group Inc. navigate bankruptcy should be dismissed from the insolvency case because its lawyers previously helped beleaguered investment adviser B. Riley Financial, Inc. and controversial executive Brian Kahn, the US Trustee said in a court filing.

Kahn and B. Riley were both involved in the soured 2023 buyout that’s at the heart of creditor complaints about Franchise Group’s bankruptcy, according to the US Trustee, which is the arm of the US Justice Department that monitors corporate bankruptcy cases. The law firm Willkie Farr & Gallagher has represented Kahn and B. Riley on various ...