(Bloomberg) — B. Riley Financial Inc. soared as much as 59% in premarket trading after its auditors signed off on its annual report and the firm said a new internal review found no connection with a controversial former business partner.

Most Read from Bloomberg

The boutique investment bank’s auditor did find material weaknesses in the company’s reporting and some of the previously reported data was revised, according to regulatory filings. Marcum LLP, which handled the audit, said the weaknesses in internal controls over financial reporting merited an “adverse opinion.”

The filing eases some pressure on B. Riley, whose value has more than halved since July after concerns aired about its relationship with Brian Kahn, a former key client. The bank had also failed to file its audited results after the end of an extension period in March.

In a separate filing, B. Riley said it had redone its internal investigation with the help of a new law firm, Winston & Strawn, which has reaffirmed that the bank has no ties to the alleged role of Kahn in the collapse of a hedge fund that resulted in a fraud investigation. Kahn has repeatedly denied wrongdoing and hasn’t been charged with anything by US authorities.

Most Read from Bloomberg Businessweek

©2024 Bloomberg L.P.