What To Know: B. Riley stock got cut in half on Monday, closing the day down about 52% after Bloomberg reported the U.S. Securities and Exchange Commission was widening its investigation into the Los Angeles-based investment bank.

Check This Out: B. Riley Shares Plummet 50%, FRG Drama Doesn’t Bode Well For Q2: CEO

B. Riley on Monday released preliminary results for the three-month period ending June 30 showing that numbers were negatively impacted by non-cash losses. The company said it expects to report a non-cash markdown of approximately $330 to $370 million related to its investment in Freedom VCM, the indirect parent of FRG.

B. Riley now expects to report a net loss of $435 million to $475 million, or $14 to $15 per share, when it reports second-quarter results. The company had $1.1 billion in cash and investments and $2.16 billion in total outstanding debt as of June 30.

In a post on X on Tuesday, short Seller Marc Cohodes called Riley a “liar and fraud” and noted that the reported numbers at B. Riley “cant be relied upon.”

“I am not letting go of the rope until $RILY is out of business and I will have done society a huge favor,” Cohodes said in a subsequent post.

Another short seller Muddy Waters Research took to X to congratulate WolfPack Research on being the first to “publicly sound the Turd Alert” on B. Riley. In a post on X on Monday, WolfPack said if there is one thing it has learned from B. Riley, it’s that “there is always more bad news to come.”

RILY Price Action: B. Riley shares were down 11.9% at $7.18 Tuesday afternoon after falling more than 50% on Monday, per Benzinga Pro. The stock is now down about 86% over the past year.

Photo: Shutterstock.

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