Robbins Geller Rudman & Dowd LLP is investigating potential violations of U.S. federal securities laws involving Jefferies Financial Group Inc., focused on whether Jefferies and certain of its top executives made false and/or misleading statements and/or failed to disclose material information to investors.
If you have information that could assist in the Jefferies investigation or if you are a Jefferies investor who suffered a loss and would like to learn more, you can provide your information here:
THE COMPANY: Jefferies Financial Group Inc. is a global full-service investment banking and capital markets firm. Under the Leucadia Asset Management (“LAM”) umbrella, Jefferies manages and provides services to a diverse group of alternative asset management platforms. Point Bonita Capital is a division of LAM.
THE REVELATION: On September 29, 2025, The Wall Street Journal published an article entitled “Auto Supplier First Brands Files for Bankruptcy Amid Accounting Questions,” reporting that “[t]he closely held company’s lenders and independent board directors are now probing whether First Brands made misrepresentations in its financial reporting” and that “First Brands relied heavily on accounts-receivable-backed financing, supplying automotive products to customers on delayed payment terms and borrowing from outside investors against the billed receivables.”
On October 8, 2025, The Wall Street Journal further reported, in an article entitled “First Brands Bankruptcy Damage Spreads to Jefferies UBS,” that Jefferies “said funds run by an asset-management unit, Point Bonita Capital, are owed around $715 million from companies that bought First Brands’ parts.” The following day, Reuters disclosed that “The U.S. Department of Justice has launched an inquiry into the collapse of bankrupt auto parts maker First Brands Group” and that “[t]he Justice Department is probing the company and its dealings with creditors.”
On October 12, 2025, The Wall Street Journal published another article entitled “Behind the Collapse of an Auto-Parts Giant: $2 Billion Hole and Mysterious CEO,” reporting that First Brands’ now former CEO “was working on an effort to refinance the nearly $6 billion of corporate loans with the help of Jefferies” and that “[t]he pitch to prospective lenders didn’t mention the billions of dollars of off -balance-sheet debt, people familiar with the matter said.”
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