Wolf Haldenstein Adler Freeman & Herz LLP reminds investors that a class action lawsuit has been filed against Fat Brands Inc. in the U.S. District Court for the Central District of California.

The next deadline for lead plaintiffs is 6 August 2024

NEW YORK, 27 June 2024 /PRNewswire/ – Wolf Haldenstein Adler Freeman & Herz LLP (“Wolf Haldenstein“) announces that a class action lawsuit has been filed in The United States District Court for the Central District of California on behalf of any person or entity holding securities of Fat Brands Inc. (“Fat Brands” or the “Company”) (NASDAQ: FAT, FATBB, FATBP, FATBW) between 24 March 2022 And May 10, 2024inclusive (the “Lesson”).

AAll investors who bought shares and losses incurred will be pointed out to contact the company immediately at (email protected) or (800) 575-0735 or (212) 545-4774. For more information about the lawsuit, or to join the lawsuit, please visit our website at www.whafh.com.

If you have suffered damage, you can at the latest 6 August 2024request that the Court appoint you as lead plaintiff in the proposed class. Please contact Wolf Haldenstein to learn more about your rights.

PLEASE CLICK HERE TO PROVIDE CONTACT AND TRANSACTION INFORMATION

The lawsuit filed claims that the defendants made materially false and/or misleading statements and failed to disclose material adverse facts about the Company’s business, operations and prospects. In particular, the complaint claims that the defendants failed to inform investors of the following:

• The defendants concealed Andrew A. Wiederhornthe Company’s Chairman and former CEO, had improperly received payments from the Company, which made Fat Brands subject to criminal liability, and;
• As a result, defendants’ statements about their business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all times.

The truth came to light May 10, 2024When The United States Public Prosecutor’s Office for the Central District California published a press release entitled “Former CEO and majority shareholder of Fat Brands Inc., former CFO and tax consultant indicted in Allegedly Plan to hide 47 million US dollars Paid to the CEO in the form of shareholder loans.” (the announcement”).

The complaint claims that the announcement stated that the accused parties were Fat Brands themselves, Andrew Wiederhorn (the former CEO and current majority shareholder of Fat Brands), Rebecca Hershinger (the former CFO of Fat Brands) and William J. Amon (former CEO of Andersen’s Los Angeles Office that provided tax advice to Wiederhorn, Fat Brands and Fog Cutter Capital Corporation, a former subsidiary of Fat Brands).

The announcement states: “Andrew A. Wiederhornthe former CEO and current majority shareholder of (Fat Brands), was indicted at the federal level for conspiracy to conceal 47 million US dollars in the form of distributions received in the form of shareholder loans from the IRS, from FAT’s minority shareholders and from the broader investor community(.)” The complaint further claims that the announcement stated that “Wiederhorn, assisted by FAT’s CFO and its outside auditor at consulting firm Andersen, concealed millions of dollars in reportable compensation and taxable income and evaded paying millions of dollars in taxes while ensuring that FAT itself violated the Sarbanes-Oxley Act’s prohibition on directly or indirectly extending credit in the form of personal loans to CEOs of publicly traded companies.”

Following this news, Fat Brands’ publicly traded securities closed as follows:

• Class A common stock fell $2.08 per share or 27.73% and closed at $5.42 At May 10, 2024.
• Class B common stock fell $2.02 per share or 28.85%, and closed at 4,98 € At May 10, 2024.
• 8.25% Series B cumulative preferred shares fell by $1.08 per share or 7.24% to the closing price of $13.82 At May 10, 2024.
• Warrants fell by 1.05 USD per warrant or 21.6%, closing at $3.80 At May 10, 2024.

Wolf Haldenstein has experience in prosecuting class action and derivative securities litigation in state and federal courts and appellate courts across the country. The firm has attorneys in various practice areas and offices in new York, Chicago, Nashville And San Diego. This firm’s reputation and expertise in shareholder and other class action litigation has been repeatedly recognized by the courts, which have appointed it to key positions in complex multidistrict and consolidated securities litigation.

If you would like to discuss this measure or have any questions about your rights and interests in this case, please contact Wolf Haldenstein by phone at (800) 575-0735 or by email at (email protected).

Contact:

Wolf Haldenstein Adler Freeman & Heart LLP
Gregory StoneDirector of Case and Financial Analysis
E-mail: (email protected) or (email protected)
Phone: (800) 575-0735 or (212) 545-4774

This press release may be considered Attorney Advertising in some jurisdictions under applicable laws and professional rules.

SOURCE Wolf Haldenstein Adler Freeman & Heart LLP