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FAT.US
id: 1246

FAT Brands (FAT) Improper Payments Case

The defendant has requested the court to dismiss the case.
C.D. California
Court
2:24cv04775
Case number
03/24/2022
Class period Start
05/10/2024
Class period End
08/06/2024
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 Type
US Securities Class Action
Case Status
Motion to dismiss
Alleged Offence
Misleading Statements, 
Failure to Disclose, 
Omissions
Suspected Party
Directors, 
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
05/10/2024
Filing date
06/07/2024
Lead Plaintiff Deadline
08/06/2024
Judge
Michael W. Fitzgerald