SAN FRANCISCO, June 27, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges FAT Brands Inc. (NASDAQ: FAT, FATBB, FATBP, FATBW) investors who suffered substantial losses to take action now by submitting your losses here.
Class Period: Mar. 24, 2022 – May 10, 2024
Lead Plaintiff Deadline: Aug. 6, 2024
Visit: www.hbsslaw.com/investor-fraud/fat
Contact the Firm Now: FAT@hbsslaw.com
844-916-0895
Class Action Lawsuit Against FAT Brands Inc.
A recent class action lawsuit alleges that FAT Brands Inc. (FAT, FATBB, FATBP, FATBW) made misleading statements and failed to disclose that its current Chairman and former CEO, Andrew A. Wiederhorn, received improper payments, exposing the company to potential criminal liability.
Historically, FAT Brands has assured investors of its cooperation with the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) in their investigations into the company’s transactions with Wiederhorn. These investigations also covered compensation, credit extensions, and other benefits received by Wiederhorn and his family from the company and its December 2020 merger partner, Fog Cutter Capital Group (FOG). The company repeatedly claimed that its financial statements were accurate and that its internal controls over financial reporting were adequate.
However, on May 9, 2024, the DOJ filed a grand jury criminal indictment against FAT Brands, Wiederhorn, tax advisor William J. Amon, and FAT CFO Rebecca D. Hershinger. The indictment alleges that Wiederhorn orchestrated the extension, maintenance, and forgiveness of approximately $47 million in compensation to himself through sham shareholder loans, which he and Amon knew were disguised compensation.
The indictment further claims that after learning of the federal criminal investigation on Dec. 1, 2021, members of FAT Brands’ board communicated with the government. Subsequently, on Mar. 28, 2023, Wiederhorn removed all directors except himself and filled the board with mostly non-independent directors under his control.
Following this news, the prices of FAT Brands’ Class A and B shares, Series B Preferred shares, and Warrants plummeted on May 10, 2024.
“Our investigation centers on the extent to which FAT understated its compensation expenses and overstated earnings metrics,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in FAT and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the FAT case and our investigation, read more »
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
