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FAT.US
id: 1246

FAT Brands (FAT) Improper Payments Case

C.D. California
Court
24 Mar 2022
Class period Start
10 May 2024
Class period End
06 Aug 2024
Lead Plaintiff motion deadline
  • FAT's stockholder filed a claim vs. FAT Brands for hiding improper payments to the former CEO.
  • On May 10, 2024, following DOJ announcement of federal charges against former CEO, $FAT fell 27.7% losing $32M+ in shareholder value.
  • FAT Brands investors can join this case to be notified about potential recovery.
Case Details:

On May 10, 2024, the U.S. Attorney's Office in Central California said the former CEO, CFO, and a tax advisor of Fat Brands were charged with hiding $47M in loans given to the CEO.

The press release stated the former CEO was charged with hiding $47M in loans he got from the IRS, Fat's minority shareholders.

It also mentioned that Wiederhorn concealed millions in compensation, evaded taxes, and violated rules against CEOs receiving personal loans from their companies.

On this announcement, $FAT fell 27.7% losing $32M+ in shareholder value.

Considering all the representations, investors have reasons to suspect that FAT Brands hid improper payments to the former CEO, risking legal trouble for the company.
Case Status
Lead Plaintiff Submission
Alleged Offence
Misleading Statements
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
10 May 2024
Filing date
07 June 2024
Lead Plaintiff Deadline
06 August 2024
Collecting participants…