Digital Brands Group, Inc. 8-K

What Happened
Digital Brands Group, Inc. announced on July 6, 2026 that it has retained the law firm of Christian Attar (Houston) to investigate potential naked short selling and other market manipulation of its common stock. In June 2026 the company engaged Shareholder Intelligence Services, LLC (“ShareIntel”) to track shareholder data — including ownership, purchases, sales and custody — after an internal review raised concerns about trading patterns.

Key Details

• Date announced: July 6, 2026; ShareIntel engaged in June 2026.
• Outside counsel: Christian Attar (market manipulation and naked short litigation firm).
• Investigative scope: suspected naked shorting, spoofing, market manipulation, collusion/acting in concert, multiple breaches of the 4.99% beneficial ownership threshold, use of foreign silent partners as nominees, and transfer agent discrepancies.
• Company actions: intends to investigate thoroughly and, if warranted, pursue legal action and provide evidence to regulators including the U.S. DOJ, SEC and the Ontario Securities Commission. Press release attached as Exhibit 99.1.

Why It Matters
For investors, allegations of naked shorting or other market manipulation can affect share price, liquidity and perceived fairness of the market for the company’s stock. The company’s decision to retain specialized counsel and a data-tracking firm signals it views the issue as material and may lead to regulatory inquiries or litigation that could increase volatility and legal costs. The filing does not report financial results or allege final findings — it notifies investors of an active investigation and the company’s intent to pursue remedies if wrongdoing is confirmed.