SAN DIEGO, June 24, 2024 (GLOBE NEWSWIRE) –
Robbins LLP reminds investors that a shareholder has filed a class action lawsuit on behalf of individuals and entities who purchased or otherwise acquired securities of Fat Brands Inc. between March 24, 2022 and May 10, 2024, including shares of Fat Brands Class A common stock (NASDAQ: FAT), shares of Fat Brands Class B common stock (NASDAQ: FATBB), shares of Fat Brands Series B 8.25% cumulative preferred stock (NASDAQ: FATBP), and warrants of Fat Brands (NASDAQ: FATBW). Fat Brands describes itself as a “leading multi-brand restaurant company that develops, markets, acquires and manages quick service, fast casual, casual dining and upscale casual dining restaurant concepts worldwide(.)”
For more information, submit a form, email Attorney Aaron Dumas, Jr., or call us at (800) 350-6003.
The accusations: Robbins LLP is investigating allegations that the former CEO of Fat Brands Inc. (FAT) caused the company to violate securities laws
According to the lawsuit, during the Class Period, defendants failed to disclose that Andrew A. Wiederhorn, the company’s chairman and former CEO, had improperly received payments from the company, thereby exposing Fat Brands to criminal liability.
On May 10, 2024, the United States 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 Plot to Conceal $47 Million Paid to CEO in Shareholder Loans.” The press release stated: “Andrew A. Wiederhorn, the former CEO and current majority shareholder of (Fat Brands), has been federally indicted with a scheme to conceal $47 million in distributions he received in shareholder loans from the IRS, FAT’s minority shareholders and the broader investor community(.)”. It continued: “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, thereby causing FAT itself to violate 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.”
On this news, the price of Fat Brands Class A common stock fell $2.08 per share, or 27.73%, to close at $5.42 on May 10, 2024. Fat Brands Class B common stock fell $2.02 per share, or 28.85%, to close at $4.98 on May 10, 2024. Fat Brands Series B cumulative preferred stock fell $1.08 per share, or 7.24%, to close at $13.82 on May 10, 2024. Fat Brands warrants fell $1.05 per warrant, or 21.6%, to close at $3.80 on May 10, 2024.
What now: You may be eligible to participate in the Fat Brands Inc. class action lawsuit. Shareholders who wish to serve as lead plaintiff for the class action lawsuit must file their motions with the Court by August 6, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible to receive compensation. If you choose not to take action, you may remain an absent class member. For more information, click here Here.
Representation is on a contingency basis. Shareholders pay neither fees nor expenses.
About Robbins LLP: Some law firms issuing press releases on this matter do not litigate securities class actions; Robbins LLP does. As a recognized leader in shareholder litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures and hold corporate executives accountable for wrongdoing since 2002. Since our founding, we have recovered more than $1 billion for shareholders.
To be notified when a class action lawsuit against Fat Brands Inc. is settled or to receive free alerts when company executives commit wrongdoing, sign up for Stock monitoring Today.
Attorney advertising. Past results do not guarantee a similar outcome.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/3435772c-e378-45a7-bb13-f11e55b6c0dc
