NEW YORK, Aug. 13, 2026 (GLOBE NEWSWIRE) -- Abraham, Fruchter & Twersky, LLP (www.aftlaw.com), a nationally recognized law firm focusing on protecting investors’ rights, informs shareholders that it is investigating potential violations of federal securities laws by Jefferies Financial Group Inc. (“Jefferies”) (NYSE: JEF), and Jefferies’ directors and officers. The investigation is focused on whether Jefferies or its executives made false or misleading statements or failed to disclose material information to investors.

On September 29, 2025, The Wall Street Journal published an article titled “Auto Supplier First Brands Files for Bankruptcy Amid Accounting Questions; First Brands lenders are looking into possible irregularities stemming from the company’s billions of dollars of off-balance-sheet debt.” That article reported that First Brands’ lenders and directors were 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 titled “First Brands Bankruptcy Damage Spreads to Jefferies, UBS; Banks disclose how much of the funds they manage are exposed to collapsed auto-parts supplier” 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.”

On October 9, 2025, Reuters disclosed that the U.S. Department of Justice had opened an inquiry into the collapse of First Brands. Reuters reported that the DOJ was probing First Brands and its dealings with creditors.

On October 12, 2025, The Wall Street Journal published an article titled “Behind the Collapse of an Auto-Parts Giant: $2 Billion Hole and Mysterious CEO; Patrick James started out buying small Ohio factories and ended atop a messy conglomerate with piles of hidden debt.” That article reported that the former First Brands 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[.]”

Abraham, Fruchter & Twersky, LLP is investigating possible securities claims relating to these facts. If you have information that could assist in the investigation or if you are a Jefferies investor who suffered a loss and would like to discuss your rights, with no cost or obligation to you, please contact Jack Fruchter (jfruchter@aftlaw.com or (212) 634-0602) or Michael Klein (mklein@aftlaw.com or (212) 634-0608).

Abraham, Fruchter & Twersky, LLP (www.aftlaw.com) is a law firm that has extensive experience in litigating securities law violations on behalf of investors. Abraham, Fruchter & Twersky, LLP is based in New York and maintains a California office.

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