Bronstein, Gewirtz & Grossman LLC announces that Fat Brands Inc. investors who have suffered substantial losses have the opportunity to pursue a class action lawsuit!

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 damages against the defendants for alleged violations of the federal securities laws on behalf of all persons and entities who purchased or otherwise acquired securities of Fat Brands between March 24, 2022 And May 10, 2024, inclusive (the “Class Period”). These investors are encouraged to join this deal by visiting the company’s website: 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 and fine dining restaurant concepts worldwide (.)”

The complaint alleged that Fat Brands made materially false and/or misleading statements because the Company made untrue statements and failed to disclose the following adverse facts regarding its business, operations and prospects, which were known to the Company or ignored by She :

(1) Andrew A. Wiederhorn, chairman and former CEO of the Company, had received improper payments from the Company, exposing Fat Brands to criminal liability; And

(2) as a result, the Company’s statements regarding its business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all times.

On May 10, 2024according to the complaint, the truth began to emerge when United States Central District Prosecutor’s Office California issued a press release titled “Former Fat Brands Inc. CEO and Majority Shareholder, Ex-CFO and Tax Advisor Indicted in Alleged Plan to conceal $47 million Paid to the CEO in the form of shareholder loans” (the “Announcement”).

The announcement stated that “Andrew A. Wiederhornthe former CEO and current majority shareholder of (Fat Brands), has been indicted on federal charges alleging a scheme to cover up $47 million in the distributions he received in the form of shareholder loans from the IRS, minority shareholders of FAT and the general investing public (.)”

On the same day, according to the complaint, the United States Securities and Exchange Commission (SEC) filed a civil action against Fat Brands. The SEC complaint alleged that “(b)between October 2017 And March 2021 (the “Relevant Period”), (Wiederhorn) (. . .) used almost $27 million Much of FAT’s money for personal expenses included private jets, first-class airline tickets, luxury vacations, her rent and mortgage payments, shopping and jewelry. During this time, Wiederhorn falsely represented to 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 money that Wiederhorn used to these personal expenses.

Upon 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 $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 mandates have fallen $1.05 per warrant, or 21.6%, to close at $3.80 on May 10, 2024.

Therefore, the complaint alleged that as a result of Fat Brands’ wrongful acts and omissions and the precipitous decline in the market value of the Company’s common stock, investors have suffered significant losses and damages.

And after?

A class action lawsuit has already been filed. If you would like to view a copy of the complaint, you can visit the firm’s website: bgandg.com/FAT or you can contact Peretz Bronstein, Esq. or its Customer Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 332-239-2660. If you suffered a loss at Fat Brands, you have until August 6, 2024, to ask the court to appoint you as lead plaintiff. Your ability to participate in any recovery does not require that you be the lead plaintiff.

There is no cost to you

We represent investors in class actions on a contingency fee basis. This means that we will ask the court to reimburse us for out-of-pocket expenses and attorney’s fees, usually a percentage of the total recovery, only if we win our case.

Why Bronstein, Gewirtz & Grossman:

Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm representing securities investors. fraud class actions and derivative suits between shareholders. Our firm has recovered hundreds of millions of dollars for investors nationwide.

Lawyer advertising. Previous results do not guarantee similar results.

Contact:

Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein Or Nathan Miller
332-239-2660 | (email protected)

SOURCE Bronstein, Gewirtz & Grossman, LLC