NEW ORLEANS–(BUSINESS WIRE)–lt;a href=”https://twitter.com/search?q=%24RILY&src=ctag” target=”_blank”gt;$RILYlt;/agt; lt;a href=”https://twitter.com/hashtag/RILY?src=hash” target=”_blank”gt;#RILYlt;/agt;–Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a
partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces
that KSF has commenced an investigation into B. Riley Financial, Inc.
(NasdaqGM: RILY).
In 2018, the Company was engaged by Vintage Capital Management, LLC
(“Vintage”) to provide financing for its acquisition of Rent-A-Center,
Inc. (“RAC”), also guaranteeing a $126.5 million termination fee for the
transaction. Per the terms of the Merger Agreement, if the transaction’s
End Date (December 17, 2018) passed without an extension being
requested, RAC was vested with the option of terminating the Agreement,
thereby potentially rendering Vintage and B. Riley liable for the
reverse termination fee. The End Date passed without notice of an
extension being provided, resulting in RAC terminating the agreement and
demanding payment of the termination fee.
Recently, the Delaware Chancery Court presiding over the subsequent
litigation ruled that RAC’s termination of the merger was valid, noting
that “Vintage and B. Riley personnel, in the context of this $1
billion-plus merger, simply forgot to give such notice [of extension],”
while reserving judgment on the Company’s liability for the termination
fee, which it noted was “enormous” compared to typical fees.
KSF’s investigation is focusing on whether B. Riley’s officers and/or
directors breached their fiduciary duties to B. Riley’s shareholders or
otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or
have been a long-term holder of B. Riley shares and would like to
discuss your legal rights, you may, without obligation or cost to you,
call toll-free at 1-877-515-1850 or email KSF Managing Partner Lewis
Kahn ([email protected]),
or visit https://www.ksfcounsel.com/cases/nasdaqgm-rily/
to learn more.
About Kahn Swick & Foti, LLC
KSF, whose partners include the Former Louisiana Attorney General
Charles C. Foti, Jr., is a law firm focused on securities, antitrust and
consumer class actions, along with merger & acquisition and breach of
fiduciary litigation against publicly traded companies on behalf of
shareholders. The firm has offices in New York, California and Louisiana.
To learn more about KSF, you may visit www.ksfcounsel.com.
Contacts
Kahn Swick & Foti, LLC
Lewis Kahn, Managing Partner
[email protected]
1-877-515-1850
