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FAT BRANDS ALERT: Bragar Eagel & Squire, P.C. Announces that a Class Action Lawsuit Has Been Filed Against FAT Brands, Inc. and Encourages Investors to Contact the Firm

By: via Business Wire

Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, announces that a class action lawsuit has been filed against FAT Brands, Inc. (“FAT Brands” or the “Company”) (NASDAQ: FAT) in the United States District Court for the Central District of California on behalf of all persons and entities who purchased or otherwise acquired FAT Brands securities between December 4, 2017 and February 18, 2022, both dates inclusive (the “Class Period”). Investors have until May 17, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.

Click here to participate in the action.

The class action focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. FAT Brands is the subject of a report published by the Los Angeles Times on February 19, 2022. According to the Times, “Federal authorities have been investigating Andrew Wiederhorn, Chief Executive of the company that owns the Fatburger and Johnny Rockets restaurant chains, and examining one of his family member’s actions as part of an inquiry into allegations of securities and wire fraud, money laundering and attempted tax evasion, court records show.”

On this news, FAT Brands' stock fell $2.42, or 22.9%, to close at $8.14 per share on February 22, 2022, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (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. When the true details entered the market, the lawsuit claims that investors suffered damages.

If you purchased or otherwise acquired FAT Brands shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Alexandra Raymond by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.

About Bragar Eagel & Squire, P.C.:

Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.

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