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

About this update from Digital Brands Group, Inc.

AUSTIN, Texas, July 13, 2026 --( 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.

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