Investor Strikes Out With Suit Targeting B. Riley Role in Buyout

An investor was unable to convince a Delaware chancellor Monday that B. Riley Financial Inc. breached a fiduciary duty in its take-private acquisition of National Holdings Corp.

Richard Frank, an NHC stockholder, failed to allege BRF controlled National for the purposes of the merger in such a way that it owed any fiduciary duties to him or its other investors, Chancellor Morgan T. Zurn said in an opinion partly dismissing his proposed class action.

Zurn dismissed Frank’s sole claim against BRF from the Delaware Court of Chancery, leaving a breach of fiduciary duties claim against National’s former CEO Michael Mullen. ...