Securities litigation partner James (Josh) Wilson encourages investors who have suffered losses greater than $100,000 in FAT brands to contact him directly to discuss their options
New York, New York–(Newsfile Corp. – April 22, 2022) – Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against FAT Brands, Inc. (“FAT Brands” or the “Company”) (NASDAQ: FAT) (NASDAQ: FATBB) (NASDAQ: FATBP) (NASDAQ: FATBW) and reminds investors of the May 17, 2022 deadline to seek the role of lead plaintiff in a federal class action in securities that has been filed against the company.
If you suffered losses greater than $100,000 investing in FAT Brands stock or options between December 4, 2017 and February 18, 2022 and want to discuss your legal rights, call Faruqi & Faruqi Partner Josh Wilson directly to 877-247-4292 or 212-983-9330 (ext. 1310). You can also click here for more information: www.faruqilaw.com/FAT.
There is no cost or obligation for you.
Faruqi & Faruqi is a leading national minority and women-owned securities law firm with offices in New York, Pennsylvania, California and Georgia.
As detailed below, the lawsuit focuses on whether the company and its officers violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1 ) the company and the Wiederhorns engaged in transactions “for no legitimate business purpose”; (2) the company ignored warning signs relating to transactions with the Wiederhorns; (3) as a result, the Company was subject to heightened scrutiny, investigations and other potential issues; (4) certain officers, who are portrayed as critical to the Company’s success, were at great risk of scrutiny, at least in part, because of the Company’s actions; (5) the company’s chief executive officer (CEO) and chief operating officer (COO) were under investigation regarding transactions with the company; and (6) as a result, the defendants’ public statements were materially false and/or misleading at all relevant times.
On February 22, 2022, before trading hours, the Company filed a Form 8-K with the SEC, in which the Company announced the following, in relevant part, with respect to the investigation:
“… 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. The Company is cooperating with the government regarding these matters, and we believe that the Company is not currently the target of the US Attorney’s investigation. At this early stage, the Company is unable to reasonably estimate the outcome or duration of government investigations:
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.
The court-appointed lead plaintiff is the investor with the greatest financial interest in the relief sought by the class that is adequate and typical of the class members directing and supervising the litigation on behalf of the putative class. Any putative class member may ask the Court to serve as lead plaintiff through counsel of their choosing, or may choose to do nothing and remain an absent class member. Your ability to participate in any collection is not affected by whether or not to serve as lead plaintiff.
Faruqi & Faruqi, LLP also encourages anyone with information regarding the conduct of Fat Brands to contact the company, including whistleblowers, former employees, shareholders and others.
Lawyer advertisement. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Past results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated confidentially.
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