The law firm of Kirby McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired FAT Brands Inc. (“FAT Brands” or the “Company”) (NASDAQ: FAT) securities between December 4, 2017 and February 18, 2022, inclusive (the “Class Period”). Investors have until May 17, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
FAT Brands develops quick-service, fast casual, and casual dining restaurant concepts.
On February 22, 2022, FAT Brands disclosed in an SEC filing that the DOJ and 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.” On this news, the price of FAT Brands stock declined by $2.42 per share, or approximately 22.9%, from $10.56 per share to close at $8.14 per share on February 22, 2022.
The lawsuit alleged throughout the Class Period, Defendants failed to disclose that the Company and the Wiederhorns engaged in transactions “for no legitimate corporate purpose”; ignored warning signs relating to transactions with the Wiederhorns; and failed to disclose that the Company’s touted Chief Executive Officer and Chief Operating Officer were under investigation relating to transactions with the Company.
If you purchased or otherwise acquired FAT Brands securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
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