B. Riley Financial Discloses Additional Pledged Shares by Chairman and Co-CEO Bryant R. Riley

B. Riley Financial, Inc. (NASDAQ: RILY) recently revealed in an SEC filing that Bryant R. Riley, Chairman and Co-CEO of the company, has pledged more shares of the company’s common stock than previously reported. The disclosure came as a result of a thorough investigation conducted by the company following Mr. Riley’s self-reporting of the additional pledged shares to the Board of Directors.

The initial 2019 loan transaction and pledge were approved in line with the company’s insider trading policy. However, Mr. Riley later pledged additional shares without obtaining approval under that policy. This led to an understatement of the number of shares pledged in support of the loan in various proxy statements and annual reports filed with the SEC over the years.

In a Schedule 13D amendment filed by Mr. Riley with the SEC, it was revealed that a total of 5,804,124 shares of the company’s common stock have been pledged in support of the loan, contrary to the previously reported 4,389,553 shares in the May 10, 2024 proxy statement.

Upon learning of the additional pledges, the Company’s Board of Directors authorized the Audit Committee to investigate the matter. The Audit Committee engaged Winston & Strawn LLP as independent counsel to assist in the investigation. Following the completion of the investigation, during which Mr. Riley fully cooperated, the Audit Committee made certain recommendations to the Board.

The Board, with Mr. Riley and Tom Kelleher, Co-Chief Executive Officer, recusing themselves, unanimously approved the Audit Committee’s recommendations. The actions taken aim to ensure compliance with the company’s policies and accurate disclosures of pledged securities in its public filings.

The disclosure underscores the company’s commitment to transparency and adherence to best practices in governance. B. Riley Financial continues to operate with a focus on accountability and integrity in its operations.

This development sheds light on the importance of accurate reporting and adherence to internal policies within publicly traded companies to maintain trust and credibility among stakeholders.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read B. Riley Financial’s 8K filing here.

About B. Riley Financial

B. Riley Financial, Inc, through its subsidiaries, provides financial services to corporate, institutional, and high net worth clients in North America, Australia, the Asia Pacific, and Europe. The company operates through six segments: Capital Markets, Wealth Management, Financial Consulting, Auction and Liquidation, Communications, and Consumer.