B. Riley Financial Alleged Stock Manipulation; Major Legal Risks Loom

Recent tweets have highlighted a series of allegations and concerns surrounding B. Riley Financial Inc. ($RILY) and its associated entities. Accusations include the manipulation of $RILY stock through the creation of fake Reddit accounts by employees of Kennedy Capital Management, a portfolio manager at $5B RIA Kennedy Capital being caught touting $RILY to retail investors, and the sale of all $RILY positions by Kennedy Capital Management in Q4 2023, presumably in response to issues with Kahn. Furthermore, there are claims of a "significant legal situation" for $RILY, including potential SEC scrutiny, "major legal problems" for Kennedy Capital Management, off-balance sheet risks, and the company's heavy reliance on Level 3 asset valuations, now constituting 70% of its investments. These developments have led to calls for legal and regulatory action against those involved, with some suggesting the situation could escalate "before Easter."