The next lead plaintiff deadline is August 6, 2024.
NEW YORK, NY / ACCESSWIRE / June 28, 2024 / Wolf Haldenstein Adler Freeman & Herz LLP (“Wolf Haldenstein”) announces that a securities class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all persons or entities who purchased or otherwise acquired securities of Fat Brands Inc. (“Fat Brands” or the “Company”) (NASDAQ: FAT, FATBB, FATBP, FATBW) between March 24, 2022 and May 10, 2024, inclusive (the “Class Period”).
All investors who have purchased shares and suffered losses are advised to contact the company immediately at (email protected) or (800) 575-0735 or (212) 545-4774. You can get more information about the promotion or join the case on our websitewww.whafh.com.
If you have suffered damage, you can at the latest 6 August 2024request that the court appoint you as lead plaintiff for the proposed class. Please contact Wolf Haldenstein to learn more about your rights.
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The complaint filed alleges 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. Specifically, the complaint alleges that the defendants failed to disclose to investors:
- The defendants concealed that Andrew A. Wiederhorn, the company’s chairman and former CEO, had received improper payments from the company, thereby exposing Fat Brands to criminal liability;
- 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 on May 10, 2024, when the U.S. Attorney’s Office for the Central District of California issued a press release titled “Former CEO and majority shareholder of Fat Brands Inc., former CFO and tax consultant indicted in alleged scheme to conceal $47 million paid to CEO in shareholder loans.” (the announcement”).
The complaint alleges that the announcement stated that the defendants were Fat Brands itself, Andrew Wiederhorn (the former CEO and current majority shareholder of Fat Brands), Rebecca Hershinger (the former CFO of Fat Brands), and William J. Amon (a former managing director of Andersen’s Los Angeles office who advised Wiederhorn, Fat Brands, and Fog Cutter Capital Corporation, a former subsidiary of Fat Brands, on tax matters).
The announcement states: “Andrew A. Wiederhorn, the former CEO and current majority shareholder of (Fat Brands), has been indicted at the federal level. He is accused of a scheme to conceal $47 million in distributions he received in the form of shareholder loans from the IRS, FAT’s minority shareholders and the broader investor community(.)” The complaint further alleges that the announcement stated that “Wiederhorn – assisted by FAT’s CFO and its outside auditor at the consulting firm Andersen – concealed millions of dollars in reportable compensation and taxable income and evaded the payment of 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 the 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%, to close at $5.42 on May 10, 2024.
- Class B common stock fell $2.02 per share, or 28.85%, to close at $4.98 on May 10, 2024.
- 8.25% Series B Cumulative Preferred Stock fell $1.08 per share, or 7.24%, to close at $13.82 on May 10, 2024.
- The warrants fell $1.05 per warrant, or 21.6%, to close at $3.80 on May 10, 2024.
Wolf Haldenstein has experience prosecuting securities class action and derivative 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 securities multidistrict and consolidated litigation.
If you would like to discuss this action or have any questions about your rights and interests in this case, please contact Wolf Haldenstein immediately by phone at (800) 575-0735 or by email (email protected).
Contact:
Wolf Haldenstein Adler Freeman & Herz LLP
Gregory Stone, Director 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 & Herz LLP
