NEW YORK, June 14, 2024 /PRNewswire/ — Attorney Advertising — Bronstein, Gewirtz & Grossman, LLC, a nationally recognized law firm, notifies investors that a class action lawsuit has been filed against Fat Brands Inc. (“Fat Brands” or “the Company”) (NASDAQ: FAT, FATBB, FATBP, FATBW) and certain of its officers.
Class Definition:
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Fat Brands securities between March 24, 2022 and May 10, 2024, inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/FAT.
Case Details:
According to the Complaint, 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[.]”
The Complaint alleges that Fat Brands made materially false and/or misleading statements because the Company misrepresented and failed to disclose the following adverse facts pertaining to its business, operations and prospects, which were known to the Company or recklessly disregarded by it:
(1) Andrew A. Wiederhorn, the Company’s Chairman and former CEO, had received improper payments from the Company, exposing Fat Brands to criminal liability; and
(2) as a result, the Company’s statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all times.
On May 10, 2024, according to the Complaint, the truth began to emerge when 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 “Announcement”).
The Announcement stated 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[.]”
On the same day, according to the Complaint, the U.S. Securities and Exchange Commission (SEC) filed a civil lawsuit against Fat Brands. The SEC Complaint alleged that “[b]etween October 2017 and March 2021 (the “Relevant Period”), [Wiederhorn] [. . .] used almost $27 million of FAT’s cash on his personal expenses included private jets, first class airfare, luxury vacations, his rent and mortgage payments, shopping, and jewelry. During this time, Wiederhorn falsely told the Company’s auditors, board of directors, and investors that neither he nor his family members had any direct or indirect material interest in the FAT cash that Wiederhorn used for those personal expenditures.”
On this news, according to the Complaint, 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.
Therefore, the Complaint alleges that as a result of Fat Brands’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s common shares, investors have suffered significant losses and damages.
What’s Next?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm’s site: bgandg.com/FAT or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 332-239-2660. If you suffered a loss in Fat Brands you have until August 6, 2024, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff.
There is No Cost to You
We represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys’ fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman:
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide.
Attorney advertising. Prior results do not guarantee similar outcomes.
Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Nathan Miller
332-239-2660 | [email protected]
SOURCE Bronstein, Gewirtz & Grossman, LLC