New York, New York–(Newsfile Corp. – April 21, 2022) – Pomerantz LLP announces that a class action lawsuit has been filed against FAT Brands. Inc. (“FAT Brands” or the “Company”) FAT (NASDAQ: FATBB) (NASDAQ: FATBP) (NASDAQ: FATBW) and certain of its officers. The class action, filed in the United States District Court for the Central District of California and registered as 22-cv-02541, is on behalf of a class consisting of all persons and entities other than defendants who have purchased or otherwise acquired publicly traded FATs. Trademarks between December 4, 2017 and February 18, 2022 inclusive (the “Class Period”). Plaintiff seeks to recover compensable damages caused by defendants’ violations of federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who purchased or otherwise acquired securities of FAT Brands during the class period, you have until May 17, 2022 to ask the court to name you as the lead plaintiff in the class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those making inquiries by e-mail are encouraged to include their mailing address, phone number and number of shares purchased.
FAT Brands claims to be a franchising company that acquires, develops and markets fast-casual, casual and fast-food restaurant concepts, including the brands of: Fatburger, Johnny Rockets, Twin Peaks, Fazoli’s, Buffalo’s Cafe, Buffalo’s Express, Ponderosa Steakhouse , Bonanza Steakhouse, Hurricane Grill & Wings, Yalla Mediterranean and Elevation Burger.
The Complaint alleges that, throughout the Class Period, statements made by Defendants were materially false and/or misleading because they misrepresented and failed to disclose the following adverse facts regarding business, operational and financial results of the company, which were known to the defendants or recklessly ignored by them. Specifically, Defendants have made false and/or misleading statements and/or failed to disclose that: (1) the Company, Andrew Wiederhorn, Chief Executive Officer (“CEO”) and President of FAT Brands, and members of its family (“Wiederhorns”) engaged in transactions “without a legitimate business purpose”; (2) the Company ignored warning signs relating to transactions with Wiederhorns; (3) as a result, the Company was subject to heightened scrutiny, investigations and other potential issues; (4) certain executives, who are portrayed as critical to the Company’s success, were at high risk of scrutiny, at least in part, because of the Company’s actions; (5) the company’s vaunted CEO and COO were under investigation regarding dealings with the company; and (6) as a result, the defendants’ public statements were materially false and/or misleading at all relevant times.
On Saturday, February 19, 2022, the Los Angeles Times published an article titled “Family Behind Fatburger Under Investigation for Alleged Fraud, Money Laundering, File Show” which revealed the investigations into Defendant Wiederhorn and his son and the Chief Operating Officer of the company Thayer Wiederhorn in relation to the Company.
On February 22, 2022, before trading hours, the Company filed with the United States Securities and Exchange Commission a Form 8-K, in which the Company announced the following, in relevant part, with respect to the investigation : … [t]The U.S. Attorney’s Office for the Central District of California (the “U.S. Attorney”) and the U.S. Securities and Exchange Commission notified the Company in December 2021 that they had initiated investigations regarding the Company and our Chief Executive Officer, Andrew Wiederhorn, and are formally seeking documents and records relating to, among other things, the company’s December 2020 merger with Fog Cutter Capital Group Inc., transactions between these entities and Mr. Wiederhorn, and compensation, credit extensions and other benefits or payments received by Mr. Wiederhorn or his family.
On this news, the price of FAT Brands Class A common stock fell $2.42 per share, or 23%, to close at $8.14 per share on February 22, 2022, on unusually high trading volume. , detrimental to investors.
On this news, the price of FAT Brands Class B common stock fell $1.83 per share, or 17%, to close at $8.89 per share on February 22, 2022, on unusually high trading volume. , detrimental to investors.
On this news, the price of FAT Brands preferred shares fell $5.36 per share, or 30%, to close at $12.37 per share on February 22, 2022, on unusually high trading volume, damaging to investors.
Following this news, the price of FAT Brands warrants fell $2.41, or 35%, to close at $4.47 per warrant on February 22, 2022, on unusually high trading volume. high, detrimental to investors.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris and Tel Aviv, is recognized as one of the leading law firms in the areas of corporate litigation, securities and antitrust. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues the tradition he established, fighting for the rights of victims of securities fraud, breaches of fiduciary duty and corporate misconduct. The firm recovered numerous multimillion-dollar damages on behalf of class members. To see www.pomlaw.com.
Robert S. Willoughby
888-476-6529 ext. 7980
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/121261