Digital Brands Group, Inc. Cancels 7.1 Million Pre-Funded Warrants Amidst Legal Investigation

Digital Brands Group, Inc. announced on June 15, 2026, the cancellation of 7.1 million pre-funded warrants. This action is taken pending a legal investigation into suspected misconduct, including allegations of collusion, acting in concert, violations of beneficial ownership caps (4.99% rule), use of foreign silent partners as nominees, and discrepancies with the transfer agent. Shareholders have raised concerns regarding these issues, prompting the company to investigate potential circumvention of ownership caps and coordinated efforts to control share price and trading activity. The investigation also covers the alleged undisclosed use of foreign silent partners as nominees and inaccuracies in warrant records. The company emphasizes its commitment to SEC regulations and market transparency. This report is filed as a Form 8-K, with the press release attached as Exhibit 99.1.