BRC Group Holdings, Inc. 8-K

What Happened
BRC Group Holdings, Inc. (f/k/a B. Riley Financial, Inc.) filed a complaint on January 20, 2026 in the Supreme Court of the State of New York, New York County, against law firm Willkie Farr & Gallagher LLP and individuals Brian Kahn and Lauren Kahn. The suit arises from the August 2023 take‑private transaction of Franchise Group, Inc. and asserts claims including aiding and abetting fraud, civil conspiracy to defraud, breach of fiduciary duty, common law fraud, fraudulent inducement and breach of contract. The Plaintiffs (BRC Group and several B. Riley subsidiaries) seek over $735 million in compensatory damages, punitive damages and disgorgement of fees paid to Willkie.

Key Details

• Filing date: January 20, 2026 (reported under Item 8.01, Other Events).
• Defendants: Willkie Farr & Gallagher LLP; Brian Kahn; Lauren Kahn.
• Alleged claims against Willkie: aiding and abetting fraud, civil conspiracy to defraud, breach of fiduciary duty.
• Damages sought: more than $735 million plus punitive damages and disgorgement of fees.

Why It Matters
This is material litigation involving a large claimed amount that could affect BRC Group’s financial position, cash flows or reputation depending on outcome. For investors, the filing signals potential legal exposure related to a prior M&A transaction; it does not indicate a resolved liability today. Monitor future SEC filings and court developments for disclosures on potential financial impact, legal costs, or settlement progress.