Jefferies Financial Group Inc. stock declined 5.8% on February 23, 2026. The company faces an ongoing investigation by law firm Johnson Fistel into potential securities law violations related to its First Brands exposure. In October 2025, Jefferies disclosed $715 million in fund exposure to First Brands invoices, causing the stock to drop 7.88%. The SEC subsequently began investigating whether Jefferies provided sufficient disclosure to investors in its Point Bonita fund regarding First Brands exposure. In January 2026, Jefferies reported a $30 million loss tied to First Brands' collapse. On the same day as the stock decline, the company filed a DEF14A showing CEO Richard B. Handler received $28.4 million in 2025 compensation, a 20.48% increase from 2024.
Read full analysisJefferies Financial Group Inc. stock declined 5.8% on February 23, 2026. The company faces an ongoing investigation by law firm Johnson Fistel into potential securities law violations related to its First Brands exposure. In October 2025, Jefferies disclosed $715 million in fund exposure to First Brands invoices, causing the stock to drop 7.88%. The SEC subsequently began investigating whether Jefferies provided sufficient disclosure to investors in its Point Bonita fund regarding First Brands exposure. In January 2026, Jefferies reported a $30 million loss tied to First Brands' collapse. On the same day as the stock decline, the company filed a DEF14A showing CEO Richard B. Handler received $28.4 million in 2025 compensation, a 20.48% increase from 2024.
Jefferies Financial Group is a diversified financial services firm offering investment banking, capital markets, and asset management services, with a deepening strategic partnership with Japan's SMBC Group. The firm has been at the center of market attention since early February after a $188 million Bitcoin-backed bond deal it orchestrated with crypto lender Ledn buckled under market stress, driving a roughly 20% selloff and generating extreme day-to-day volatility. Today's decline compounds that overhang with a broad financials sector rout that hit the entire peer group.