SAN DIEGO, June 24, 2024 (GLOBE NEWSWIRE) —
Robbins LLP reminds investors that a shareholder filed a class action on behalf of persons and entities that purchased or otherwise acquired Fat Brand Inc. securities, including Fat Brands Class A common stock (NASDAQ: FAT), Fat Brands Class B common stock (NASDAQ: FATBB), Fat Brands 8.25% Series B Cumulative Preferred Stock (NASDAQ: FATBP), and Fat Brands Warrants (NASDAQ: FATBW) between March 24, 2022 and May 10, 2024. Fat Brands describes itself as “a leading multi-brand restaurant company that develops, markets, acquires and manages quick-service, fast casual, casual dining and polished casual dining restaurant concepts around the world[.]”
For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.
The Allegations: Robbins LLP is Investigating Allegations that the Former CEO of Fat Brands Inc. (FAT) Caused the Company to Violate Securities Laws
According to the complaint, during the class period, defendants failed to disclose that Andrew A. Wiederhorn, the Company’s Chairman and former CEO, had received improper payments from the Company, 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 entitled “Former CEO and Controlling Shareholder of Fat Brands Inc., Former CFO, and a Tax Advisor Indicted in Alleged Scheme to Conceal $47 million Paid to CEO in the Form of Shareholder Loans.” The press release revealed that “Andrew A. Wiederhorn, the former CEO and current controlling shareholder of [Fat Brands], has been indicted on federal charges alleging 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 investing public[.]” It further stated that “Wiederhorn-assisted by FAT’s [CFO] and his outside accountant at advisory firm Andersen – concealed millions of dollars in reportable compensation and taxable income and evaded the payment of millions of dollars in taxes, while causing FAT itself to violate the Sarbanes-Oxley Act’s prohibition on direct and indirect extensions of credit to public-company CEOs in the form of a personal loan.”
On this news, the price of Fat Brands Class A common stock fell by $2.08 per share, or 27.73%, to close at $5.42 on May 10, 2024. Fat Brands Class B common stock fell by $2.02 per share, or 28.85%, to close at $4.98 on May 10, 2024. Fat Brands 8.25% Series B Cumulative Preferred Stock fell by $1.08 per share, or 7.24% to close at $13.82 on May 10, 2024. Fat Brands warrants fell by $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 class action against Fat Brands Inc. Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by August 6, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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