06:47 AM EDT, 08/13/2024 (MT Newswires) -- B. Riley Financial ( RILY ) shares were down 9% in recent Tuesday premarket activity, a day after the company said it could not file its report on Form 10-Q for the quarter ended June 30 over delays in finalizing the valuations of certain loans and investments.

The US Securities and Exchange Commission is expanding its probe into B. Riley about how it handles risk disclosures, media reports said Monday. Investigators are also looking into founder Bryant Riley's relationship with Franchise Group (FRG), one of B. Riley's larger investment holdings, in a wider review of possible insider trading, according to reports.

Also on Monday, the investment firm reported a Q2 preliminary net loss of $14 to $15 per diluted share and announced that it is suspending its common dividend to "prioritize deleveraging."

The stock closed 52% lower on Monday.

Price: 7.36, Change: -0.79, Percent Change: -9.69