The financial situation of $RILY, associated with Bryant Riley, is deteriorating rapidly, with reports indicating the firm is functionally bankrupt and facing over $1.5 billion in debt. A recent lawsuit has revealed that $RILY has been concealing mass defections since August, including the loss of hundreds of employees and the entire mergers and acquisitions division. This has led to calls for the Nasdaq Exchange to delist the company, which is described as a fraud by critics. Additionally, it has been reported that Bryant Riley's son is involved with The Franchise Group, further complicating the situation. Legal actions are underway, with Merriman hiring Quinn Emanuel to sue Bryant Riley, adding to the mounting challenges for the firm.