A lawsuit was filed on behalf of investors in FAT Brands Inc. (NASDAQ:FAT, FATBB, FATBP, FATBW) shares over alleged securities laws violations.
San Diego, CA — (SBWIRE) — 04/04/2022 — An investor, who purchased shares of FAT Brands Inc. (NASDAQ: FAT, FATBB, FATBP, FATBW), filed a lawsuit over alleged Securities Laws violations by FAT Brands Inc.
Investors who purchased shares of FAT Brands Inc. (NASDAQ: FAT, FATBB, FATBP, FATBW) have certain options and for certain investors are short and strict deadlines running. Deadline: May 17, 2022. FAT Brands Inc. (NASDAQ: FAT, FATBB, FATBP, FATBW) investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 – 1554.
Beverly Hills, CA based FAT Brands Inc., a multi-brand franchising company, acquires, develops, and markets quick-service, fast casual, and casual dining restaurant concepts worldwide.
On February 19, 2022, the Los Angeles Times published an article entitled “Family behind Fatburger under investigation for alleged fraud, money laundering, records show” which reported that federal authorities have been investigating FAT Brands’ chief executive “as part of an inquiry into allegations of securities and wire fraud, money laundering and attempted tax evasion, court records show.”
Then on February 22, 2022, before market hours, FAT Brands Inc. disclosed in an SEC filing that the U.S. Attorney’s Office for the Central District of California and the U.S. Securities and Exchange Commission (SEC) have both “opened investigations relating to the Company and our Chief Executive Officer, Andrew Wiederhorn, and are formally seeking documents and materials concerning, among other things, the Company’s December 2020 merger with Fog Cutter Capital Group Inc., transactions between these entities and Mr. Wiederhorn, and compensation, extensions of credit and other benefits or payments received by Mr. Wiederhorn or his family.”
Shares of FAT Brands Inc. (NASDAQ: FAT) declined from $11.86 per share on January 6, 2022, to as low as $6.86 per share on February 24, 2022.
According to the complaint the plaintiff alleges on behalf of purchasers of FAT Brands Inc. (NASDAQ: FAT, FATBB, FATBP, FATBW) common shares between December 4, 2017 and February 18, 2022, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between December 4, 2017 and February 18, 2022, the defendants made false and/or misleading statements and/or failed to disclose: (1) the Company and the Wiederhorns engaged in transactions “for no legitimate corporate purpose”; (2) the Company ignored warning signs relating to transactions with the Wiederhorns; (3) as a result, the Company was likely to face increased scrutiny, investigations, and other potential issues; (4) certain executives, who are touted as critical to the Company’s success, were at great risk of scrutiny—potentially, at least in part, due to the Company’s actions; (5) the Company’s touted chief executive officer (CEO) and chief operating officer (COO) were under investigation regarding transactions with the Company; and (6) as a result, defendants’ public statements were materially false and/or misleading at all relevant times.
Those who purchased shares of FAT Brands Inc. (NASDAQ: FAT, FATBB, FATBP, FATBW) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North – Suite 423
92108 San Diego
About The Shareholders Foundation
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
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