BRC Group Holdings, previously known as B. Riley, has filed a fraud lawsuit against franchise entrepreneur Brian Kahn and the law firm Willkie Farr & Gallagher. The lawsuit arises from a 2023 deal in which Franchise Group (FRG) was taken private, during which BRC Group alleges fraudulent actions took place.
According to court filings, BRC Group claims that Kahn and the law firm engaged in deceptive practices related to the transaction, causing financial harm to the company. The lawsuit seeks damages and alleges that misrepresentations were made during the deal process, undermining BRC Group’s interests.
Brian Kahn is the founder of Franchise Group, a prominent franchise operator and consolidator. Willkie Farr & Gallagher is a well-known law firm that advised FRG on the privatization deal. The legal action marks a significant dispute involving high-profile parties engaged in a major corporate restructuring.
Representatives for all involved parties have not issued detailed public statements concerning the lawsuit. The case adds complexity to the ongoing corporate activities surrounding Franchise Group’s recent privatization and reflects ongoing legal tensions in corporate transactions of this scale.