SAN FRANCISCO, March 21, 2022 (GLOBE NEWSWIRE) -- Hagens Berman urges FAT Brands Inc. (NASDAQ: FAT) investors with significant losses to submit your losses now. A securities fraud class action has been filed and investors with significant losses have an opportunity to lead the case.
Class Period: Dec. 4, 2017 – Feb. 18, 2022
Lead Plaintiff Deadline: May 17, 2022
Visit: www.hbsslaw.com/investor-fraud/FAT
Contact An Attorney Now: FAT@hbsslaw.com
844-916-0895
FAT Brands Inc. (FAT) Securities Fraud Class Action:
The lawsuit focuses on FAT Brands’ most senior executives’ pilfering of corporate funds for personal use.
Specifically, Defendants misrepresented and omitted to disclose that: (1) FAT Brands and CEO Wiederhorn and his family engaged in transactions “for no legitimate corporate purpose”; (2) the Company ignored warning signs relating to transactions with the Wiederhorns; (3) the Company was likely to face increased scrutiny, investigations, and other potential issues; (4) executives touted as critical to the Company’s success, were at great risk of scrutiny; and, (5) the Company’s CEO and COO were under investigation regarding transactions with it.
Investors began to learn the truth, according to the complaint, on Feb. 19, 2022 when The Los Angeles Times reported that “[i]n a November affidavit outlining [an] investigation [of FAT Brands], a special agent for the FBI focusing on complex financial crimes alleged that [CEO] Wiederhorn, 56, had ‘devised and executed a fraudulent scheme’ to avoid paying taxes and received ‘millions of dollars in sham loans’ through his companies.” The November affidavit reportedly concluded there was probable cause to believe Wiederhorn engaged in misrepresentations to investors.
Then, on Feb. 22, 2022, FAT Brands revealed that in Dec. 2021 the DOJ and the SEC had opened investigations concerning compensation, extensions of credit and other payments received by CEO Wiederhorn or his family.
“We’re focused on investors’ losses and proving CEO Wiederhorn diverted company funds for personal use,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in FAT Brands, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding FAT Brands should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email FAT@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
