Babcock & Wilcox Investor Suit Alleges BRC Group Ties in AI Deal

Babcock & Wilcox Enterprises Inc. didn’t alert investors that its largest shareholder, the financial firm formerly known as B. Riley Financial Inc., had a close relationship with the power producer with which B&W inked a $2.4 billion deal, a proposed class action said.

B&W had been touting its agreement with Applied Digital Corp. for an artificial intelligence data center power project, preliminarily announced in November, until a short seller questioned whether the energy solutions company would eventually recognize revenues on the contract, according to the investor’s complaint filed Tuesday at the US District Court for the Northern District of Ohio. ...