Digital Brands Group Announces It Will Submit Compliance Demands to Clearinghouses and Prime Brokers Ahead of Mandatory Legal Pursuit of Any and All Fails-to-Deliver and Volume Anomalies

AUSTIN, Texas--(BUSINESS WIRE)--Digital Brands Group, Inc. (“DBG” or the “Company”) (NASDAQ: DBGI), a publicly traded company specializing in apparel and e-commerce, today announced that it will submit compliance demands to clearinghouses and prime brokers ahead of mandatory legal pursuit of any and all fails-to-deliver and volume anomalies.

The Company announced on July 6, 2026 that it had retained the law firm of Christian Attar, a recognized market manipulation and naked short litigation firm located in Houston, Texas, to lead an investigation of any potential naked short selling or other market manipulation of common shares of Digital Brands Group.

The purpose of the forensic audit is to monitor and identify (1) persistent, unresolved Failures-to-Deliver (FTDs), (2) significant, ongoing imbalances in the clearance and settlement of the Company’s common stock, par value $0.0001 per share, and (3) volume anomalies generated via suspected ex-clearing transactions, offshore intra-clearing networks, and cross-border settlement imbalances between the Company’s primary NASDAQ listing (DBGI) and its secondary European listing on the Frankfurt Stock Exchange (Ticker: S8W; WKN: A3CQ98) that materially impact the Company's public float.

"Digital Brands Group will maintain a zero-tolerance policy regarding predatory, abusive, and illegal trading practices that actively harm our retail shareholders and distort true market valuation," stated Hil Davis, Chief Executive Officer of Digital Brands Group. "We plan to hold any and all non-compliant clearing entities directly accountable. We will deliver our analysis straight to the compliance desks of the institutions involved. Our legal and executive teams are entirely unified in ensuring that every single short position, fail-to-deliver, and off-book liability is forcefully and transparently reconciled pursuant to regulatory standards."

The Company plans to continue to utilize daily data updates from ShareIntel to monitor clearinghouse ledger adjustments on a daily basis. Any institution failing to execute immediate, appropriate settlement close-outs or continuing to facilitate unbacked short transactions will be subject to immediate, aggressive legal remedies, including formal complaints submitted to the U.S. Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and relevant congressional oversight committees.

About Digital Brands Group

We offer a wide variety of apparel through numerous brands on a both direct-to-consumer and wholesale basis. We have created a business model derived from our founding as a digitally native-first vertical brand. We focus on owning the customer's "closet share" by leveraging their data and purchase history to create personalized targeted content and looks for that specific customer cohort.

Forward-looking Statements

Certain statements included in this release are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting DBG and therefore involve several risks and uncertainties. You can identify these statements by the fact that they use words such as “will,” “anticipate,” “estimate,” “expect,” “should,” and “may” and other words and terms of similar meaning or use of future dates, however, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements regarding DBG’s plans, objectives, projections and expectations relating to DBG’s operations or financial performance, and assumptions related thereto are forward-looking statements. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. DBG undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Potential risks and uncertainties that could cause the actual results of operations or financial condition of DBG to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: risks arising from the level of consumer demand for apparel and accessories; DBG’s ability to add and retain strategic partners and customers; disruption to DBG's distribution system; the financial strength of DBG’s customers; fluctuations in the price, availability and quality of raw materials and contracted products; disruption and volatility in the global capital and credit markets; DBG’s response to changing fashion trends, evolving consumer preferences and changing patterns of consumer behavior; intense competition from online retailers; manufacturing and product innovation; increasing pressure on margins; DBG’s ability to implement its business strategy; DBG’s ability to grow its wholesale and direct-to-consumer businesses; retail industry changes and challenges; DBG’s and its vendors’ ability to maintain the strength and security of information technology systems; the risk that DBG’s facilities and systems and those of our third-party service providers may be vulnerable to and unable to anticipate or detect data security breaches and data or financial loss; DBG’s ability to properly collect, use, manage and secure consumer and employee data; stability of DBG’s manufacturing facilities and foreign suppliers; continued use by DBG’s suppliers of ethical business practices; DBG’s ability to accurately forecast demand for products; continuity of members of DBG’s management; DBG’s ability to protect trademarks and other intellectual property rights; possible goodwill and other asset impairment; DBG’s ability to execute and integrate acquisitions; changes in tax laws and liabilities; legal, regulatory, political and economic risks; adverse or unexpected weather conditions; DBG's indebtedness and its ability to obtain financing on favorable terms, if needed, could prevent DBG from fulfilling its financial obligations; and climate change and increased focus on sustainability issues. More information on potential factors that could affect DBG’s financial results is included from time to time in DBG’s public reports filed with the SEC, including DBG’s Annual Report on Form 10-K, and Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K filed or furnished with the U.S. Securities and Exchange Commission.