FAT, FATBB, FATBP, FATBW INVESTOR ALERT: Bronstein, Gewirtz & Grossman LLC Announces that Fat Brands Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit

New York, New York--(Newsfile Corp. - August 5, 2024) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized law firm, notifies investors that a class action lawsuit has been filed against Fat Brands Inc. (NASDAQ: FAT) (NASDAQ: FATBB) (NASDAQ: FATBP) (NASDAQ: FATBW) ("Fat Brands" or "the Company") and certain of its officers.

Class Definition:

This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Fat Brands securities between March 24, 2022 and May 10, 2024, inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/FAT.

Case Details:

According to the Complaint, Fat Brands describes itself as "a leading multi-brand restaurant company that develops, markets, acquires and manages quick-service, fast casual, casual dining and polished casual dining restaurant concepts around the world[.]"

The Complaint alleges that Fat Brands made materially false and/or misleading statements because the Company misrepresented and failed to disclose the following adverse facts pertaining to its business, operations and prospects, which were known to the Company or recklessly disregarded by it:

(1) Andrew A. Wiederhorn, the Company's Chairman and former CEO, had received improper payments from the Company, exposing Fat Brands to criminal liability; and

(2) as a result, the Company's statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all times.

On May 10, 2024, according to the Complaint, the truth began to emerge when the United States Attorney's Office for the Central District of California issued a press release entitled "Former CEO and Controlling Shareholder of Fat Brands Inc., Former CFO, and a Tax Advisor Indicted in Alleged Scheme to Conceal $47 million Paid to CEO in the Form of Shareholder Loans" (the "Announcement").

The Announcement stated that "Andrew A. Wiederhorn, the former CEO and current controlling shareholder of [Fat Brands], has been indicted on federal charges alleging a scheme to conceal $47 million in distributions he received in the form of shareholder loans from the IRS, FAT's minority shareholders, and the broader investing public[.]"

On the same day, according to the Complaint, the U.S. Securities and Exchange Commission (SEC) filed a civil lawsuit against Fat Brands. The SEC Complaint alleged that "[b]etween October 2017 and March 2021 (the "Relevant Period"), [Wiederhorn] [. . .] used almost $27 million of FAT's cash on his personal expenses included private jets, first class airfare, luxury vacations, his rent and mortgage payments, shopping, and jewelry. During this time, Wiederhorn falsely told the Company's auditors, board of directors, and investors that neither he nor his family members had any direct or indirect material interest in the FAT cash that Wiederhorn used for those personal expenditures."