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Wolf Haldenstein Adler Freeman & Herz LLP reminds investors that a securities class action lawsuit has been filed in the United States District Court for the Central District of California against Fat Brands Inc.

Posted on by Dsen .N

The upcoming deadline for the main plaintiff to file motions is August 6, 2024

NEW YORK, July 5, 2024 /PRNewswire/ — Wolf Haldenstein Adler Freeman & Herz LLP (“Wolf Haldenstein”) Announces Securities Class Action Lawsuit Filed United States District Court for the Central District California on behalf of all persons or entities that purchased or otherwise acquired securities of Fat Brands Inc. (“Fat Brands” or the “Company”) (NASDAQ: FAT, FATBB, FATBP, FATBW) between March 24, 2022 AND May 10, 2024inclusive (the “Class Period”).

ANDAll investors who bought shares and the losses incurred are reported to contact the company immediately at the number (email protected) or (800) 575-0735 or (212) 545-4774. For more information about the campaign or to join the cause, visit our website at www.whafh.com.

If you have suffered losses, you can report them no later than August 6, 2024ask the Court to appoint you as lead plaintiff for the proposed class. Contact Wolf Haldenstein to learn more about your rights.

PLEASE CLICK HERE TO PROVIDE CONTACT DETAILS AND TRANSACTION INFORMATION

Complaint filed in lawsuit claims that the Defendants made materially false and/or misleading statements and failed to disclose material adverse facts about the Company’s business, operations and prospects. In particular, the Complaint claims that the Defendants failed to inform investors that:

  • The accused hid that Andrew A. WiederhornThe Chairman of the Management Board and former CEO of the Company received undue payments from the Company, exposing Fat Brands to criminal liability;
  • as a result, Defendants’ statements about their business, operations, and prospects were materially false and misleading and/or lacked any reasonable basis.

The truth came out May 10, 2024When United States Central District Prosecutor’s Office California issued a press release titled “Former CEO and major shareholder of Fat Brands Inc., former CFO and tax advisor charged in the case Alleged Hiding plan 47 million dollars Paid to CEO in the form of loans from shareholders. (announcement”).

The complaint claims that the announcement stated that the accused parties were Fat Brands themselves, Andrew Wiederhorn (former CEO and current majority shareholder of Fat Brands), Rebecca Hershinger (Former CFO of Fat Brands) and William J. Amon (Former Managing Director of Andersen Los Angeles (an office that provided tax advisory services to Wiederhorn, Fat Brands and Fog Cutter Capital Corporation, a former subsidiary of Fat Brands).

The announcement stated that “Andrew A. Wiederhornformer CEO and current majority shareholder (Fat Brands), has been indicted on federal charges of conspiracy to conceal 47 million dollars in the form of loans he received from the IRS, minority shareholders of FAT and the broader investing public (…)” The complaint continues claims that the advertisement stated that “Wiederhorn — aided by FAT (the CFO) and his outside accountant at consulting firm Andersen — hid millions of dollars in reported compensation and taxable income and avoided paying millions of dollars in taxes, while causing FAT itself to violate the Sarbanes-Oxley Act’s prohibition on directly or indirectly extending personal loans to CEOs of public companies.”

Following this news, Fat Brands stock prices closed the session at the following volumes:

  • Class A common stock fell by 2.08 dollars per share, or 27.73%, which will close at the level of $5.42 on May 10, 2024.
  • Class B common stock fell by 2.02 dollars per share, or 28.85%, which will close at the level of $4.98 ON May 10, 2024.
  • 8.25% of the series B preferred shares with cumulative interest decreased by 1.08 dollars per share, or 7.24% at closing 13.82 PLN ON May 10, 2024.
  • The orders dropped by 1.05 dollars on the warrant, i.e. 21.6%, to close at the level $3.80 ON May 10, 2024.

Wolf Haldenstein has experience prosecuting securities class action and derivative litigation in state, federal and appellate courts throughout the country. The firm has attorneys in a variety of practice areas and offices in New York, Chicago, Nashville and San Diego. The firm’s reputation and experience in shareholder and other class action litigation has been repeatedly recognized by courts, which have appointed it to lead positions in complex, multi-district and consolidated securities litigation.

If you wish to discuss this activity or have any questions regarding your rights and interests in this matter, please contact us immediately Wolf Haldenstein by phone at (800) 575-0735 or by email at (email protected).

Contact:

Wolf Haldenstein Adler Freeman & Herz Sp. z o. o.
Gregory StoneDirector of Case Studies and Financial Analysis
E-mail: (email protected) Or (email protected)
Tel: (800) 575-0735 or (212) 545-4774

This press release may be considered attorney advertising in some jurisdictions under applicable law and ethical rules.

SOURCE Wolf Haldenstein Adler Freeman & Herz Sp. z o. o.