The investigation follows a string of financial setbacks and regulatory scrutiny that began in late 2025. Reports from The Wall Street Journal revealed that Point Bonita Capital, a fund managed by a Jefferies unit, held approximately $715 million in claims against companies tied to First Brands. As news of the bankruptcy and subsequent U.S. Department of Justice inquiries surfaced, Jefferies shares experienced significant volatility, dropping nearly 8% on October 8, 2025, and sliding further following reports of a Securities and Exchange Commission probe.

Financial strain intensified in early 2026 when the company confirmed a $30 million loss directly attributable to the First Brands collapse. The downward trend in share price persisted through June 2026, when Jefferies reported second-quarter earnings that missed analyst expectations. Management cited weaker investment performance and reduced fees from Point Bonita and related funds as primary factors for the disappointing results, triggering a 9.15% single-day decline in the stock price.