B. Riley Financial has disclosed that Chairman and Co-CEO Bryant R. Riley pledged additional shares of company stock as collateral to Axos Bank without required approval under the company's insider trading policy. The total pledged shares amount to 5,804,124, significantly higher than the 4,389,553 previously reported in the May 10, 2024 proxy statement.Following Mr. Riley's self-reporting of the additional pledged shares, the Board's Audit Committee launched a thorough investigation, engaging Winston & Strawn LLP as independent counsel. The investigation revealed inaccurate disclosures in multiple company filings, including proxy statements from 2020-2024 and Form 10-K amendments.The Board has unanimously approved the Audit Committee's recommendations for remedial and personnel actions to ensure future compliance with company policies and accurate disclosure of pledged securities. Both Mr. Riley and Co-CEO Tom Kelleher recused themselves from this decision.

B. Riley Financial has disclosed that Chairman and Co-CEO Bryant R. Riley pledged additional shares of company stock as collateral to Axos Bank without required approval under the company's insider trading policy. The total pledged shares amount to 5,804,124, significantly higher than the 4,389,553 previously reported in the May 10, 2024 proxy statement.Following Mr. Riley's self-reporting of the additional pledged shares, the Board's Audit Committee launched a thorough investigation, engaging Winston & Strawn LLP as independent counsel. The investigation revealed inaccurate disclosures in multiple company filings, including proxy statements from 2020-2024 and Form 10-K amendments.The Board has unanimously approved the Audit Committee's recommendations for remedial and personnel actions to ensure future compliance with company policies and accurate disclosure of pledged securities. Both Mr. Riley and Co-CEO Tom Kelleher recused themselves from this decision.