DBGI News & Events

Digital Brands announced that its AVO brand has partnered with the largest college bookstore chain, which has over 1,000 bookstore locations. Additionally, AVO will assume all prime retail floor space currently occupied by Lululemon across all bookstores. The company plans to maintain this footprint while rolling out its store-in-store concept.

Digital Brands announced that the company has retained the law firm of Christian Attar, a market manipulation and naked short litigation firm located in Houston, Texas, to an investigation of any potential naked short selling or other market manipulation of common shares of Digital Brands Group. Additionally, the company engaged Shareholder Intelligence Services in June to support efforts to investigate and address potentially illegal trading activity. This includes suspected naked short selling and market manipulation involving the company's common stock. The decision to engage Christian Attar and ShareIntel follows an internal review of trading patterns that raised concerns regarding potential violations of securities laws, including naked shorting, spoofing, market manipulation, collusion, acting in concert, multiple violations of the 4.99% rule, using foreign silent partners as nominees and transfer agent discrepancies. ShareIntel will track all shareholder data, including share ownership, purchases, sales and custody by individuals, institutions, broker-dealers, clearing agents and custodians and communicate findings to shareholders.

DBGI has cancelled 7.1M pre-funded warrants to protect shareholders pending a legal investigation. The Company has been notified by concerned shareholders regarding a troubling series of events concerning collusion, acting in concert, multiple violations of the 4.99% rule, using foreign silent partners as nominees and transfer agent discrepancies. Shareholders and stakeholders are actively seeking immediate clarification and corrective action from the Board of Directors regarding these concerns. The Company remains committed to adhering to SEC regulations and ensuring a fair, transparent market for all investors. Further updates will be provided as this matter develops. Pre-funded warrants are typically structured with a 4.99% or 9.99% beneficial ownership blocker to prevent individual entities from triggering change-of-control provisions or crossing SEC reporting thresholds. Shareholders have raised serious red flags regarding a concerted effort by certain entities to circumvent these caps. The Company is being urged to investigate whether related parties and attribution affiliates are coordinating and acting in concert to exert disproportionate control over the share price and trading activity through, including share price manipulation. Shareholders are requesting a formal investigation into suspected misconduct, market manipulation, and the undisclosed use of foreign silent partners as nominees. The complaint alleges that certain entities transferred pre-funded warrant allocations to foreign silent partners to collude, control share allocations, and artificially manipulate share prices. Share transfers and Share Purchase Agreements were submitted to the transfer agent. Beyond control and collusion concerns, and the 4.99% beneficial ownership issues and using foreign silent partners as nominees, there are glaring inaccuracies in the outstanding warrant total and records logged per entity given the SPA's and transfer agreements that a single controlling party from this group provided to the transfer agent.