Upcoming Lead Plaintiff Deadline is August 6, 2024
NEW YORK, July 5, 2024 /PRNewswire/ — Wolf Haldenstein Adler Freeman & Herz LLP (“Wolf Haldenstein”) announces that a securities class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of all persons or entities who purchased or otherwise acquired Fat Brands Inc. (“Fat Brands” or the “Company”) (NASDAQ: FAT, FATBB, FATBP, FATBW) securities between March 24, 2022 and May 10, 2024, inclusive (the “Class Period”).
All investors who purchased shares and incurred losses are advised to contact the firm immediately at [email protected] or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action or join the case on our website, www.whafh.com.
If you have incurred losses, you may, no later than August 6, 2024, request that the Court appoint you as the lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights.
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The filed Complaint in the lawsuit alleges that Defendants made materially false and/or misleading statements, as well as did not disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges that the Defendants failed to disclose to investors that:
- Defendants hid that Andrew A. Wiederhorn, the Company’s Chairman and former CEO, had received improper payments from the Company, exposing Fat Brands to criminal liability and;
- as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all times.
The truth emerged on May 10, 2024, 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 Complaint alleges that the Announcement specified that the indicted parties were Fat Brands itself, Andrew Wiederhorn (the former CEO and current controlling Fat Brands shareholder), Rebecca Hershinger (the former Fat Brands CFO), and William J. Amon (a one-time managing director of Andersen’s Los Angeles office, who provided tax-advisory services to Wiederhorn, Fat Brands, and Fog Cutter Capital Corporation, a former Fat Brands affiliate).
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[.]” The Complaint further alleges that the Announcement 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, Fat Brands publicly traded securities closed as follow:
- Class A common stock fell by $2.08 per share, or 27.73%, to close at $5.42 on May 10, 2024.
- Class B common stock fell by $2.02 per share, or 28.85%, to close at $4.98 on May 10, 2024.
- 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.
- Warrants fell by $1.05 per warrant, or 21.6%, to close at $3.80 on May 10, 2024.
Wolf Haldenstein has experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas, and offices in New York, Chicago, Nashville and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735 or via e-mail at [email protected].
Contact:
Wolf Haldenstein Adler Freeman & Herz LLP
Gregory Stone, Director of Case and Financial Analysis
Email: [email protected] or [email protected]
Tel: (800) 575-0735 or (212) 545-4774
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
SOURCE Wolf Haldenstein Adler Freeman & Herz LLP
