National investment loss lawyers KlaymanToskes is investigating potential claims on behalf of investors who suffered significant losses after purchasing iMedia Brands, Inc. (formerly Nasdaq: IMBI) based on recommendations from brokerage firms and financial advisors, including recommendations connected to B. Riley Financial and its affiliated entities.
iMedia Brands filed for Chapter 11 bankruptcy protection on June 28, 2023, and Nasdaq subsequently moved to suspend trading in IMBI following the bankruptcy filing. After the bankruptcy, iMedia completed an asset sale to IV Media in August 2023. As is common in Chapter 11 asset-sale outcomes, common shareholders may be left with little or no recovery.
If you suffered losses in iMedia Brands (IMBI) due to a recommendation by your brokerage firm or financial advisor, you may be entitled to a financial recovery through FINRA arbitration.
Contact securities attorney Steven D. Toskes to discuss your potential recovery options at (888) 997-9956 or investigations@klaymantoskes.com for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
Public disclosures show that iMedia Brands entered Chapter 11 on June 28, 2023. Nasdaq issued delisting/suspension-related notices following the Chapter 11 filing, and trading was scheduled for suspension shortly thereafter.
In August 2023, iMedia completed the sale of substantially all of its assets to IV Media, LLC, pursuant to the bankruptcy process, with the transaction approved by the Bankruptcy Court.
KlaymanToskes is reviewing circumstances where investors allege they were recommended IMBI while brokerage-firm relationships and incentives may have impacted the recommendation.
Public information reflects that B. Riley-affiliated entities had business relationships with iMedia, including iMedia’s announcement that it selected B. Riley Real Estate in connection with a sale-leaseback process (publicly reported in 2022). B. Riley Securities’ own materials also list iMedia Brands among its representative transactions/services (including capital markets activity).
Separately, public reporting has reflected B. Riley Securities equity research activity relating to iMedia Brands in 2023. Where firms provide multiple services around an issuer, conflicts must be disclosed and properly managed. Failures in disclosure, supervision, or due diligence may support investor claims depending on the facts.
Potential conflicts of interest may arise when issuers incentivize brokers/investment advisors with substantial commissions to promote their financial products. A problem often associated with investment recommendations is the high sales commissions brokers typically earn for selling these investments, which can be as high as 15%. A representative that recommends investments for the purpose of being compensated through increased commissions, and enriches themselves rather than benefiting the client, is violating securities laws.
To recover investment losses, you do not go through the traditional court system with a lawsuit. The only remedy is through a FINRA arbitration, a specific process designed for these types of disputes. This process involves presenting your case to a panel set by the Financial Industry Regulatory Authority (FINRA), not a courtroom. This approach is streamlined and focused on investment disputes, making it a suitable and effective way for investors to seek compensation for losses caused by financial advisors or brokerage firms.
FINRA (the Financial Industry Regulatory Authority) is a self-regulatory organization that oversees brokers and brokerages. In the event of a dispute between an investor and their financial advisor, investors can choose to file a FINRA arbitration claim. FINRA is overseen by the Securities and Exchange Commission (“SEC”).
The arbitration process is designed to be much faster than the court system and allows both parties to present their case before a panel of arbitrators. The arbitrators will then decide how to resolve the dispute, including ordering the advisor to pay damages for any losses suffered by the investor.
If you suffered losses in iMedia Brands or other investments, you are encouraged to contact attorney Steven D. Toskes, at 888-997-9956 or by email at investigations@klaymantoskes.com to discuss potential recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
As an investor, there are signs that you should look out for if you believe you have a claim against your broker/advisor for unsuitable investment recommendations in iMedia Brands. These signs could potentially indicate misconduct, negligence, or investment fraud. Investors are encouraged to contact our firm immediately if you have experienced any of the following:
Some investors have close relationships with their brokers due to the time and trust built over the course of their investment relationship. However, it is crucial to remember that financial decisions should be based on careful analysis and due diligence rather than solely relying on personal relationships.
Engaging the services of an experienced securities attorney to evaluate your specific circumstances is strongly advised. At KlaymanToskes, our team of experienced securities attorneys has a deep understanding of this complex area of law, allowing us to provide invaluable insight and tailored guidance that directly addresses your individual needs.
If you purchased unsuitable iMedia Brands investments, or any other unsuitable investments through your financial advisor/brokerage firm, and suffered significant losses, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you