NEW YORK, March 27, 2022 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of FAT Brands, Inc. (NASDAQ: FAT) and Cano Health, Inc. (NYSE: CANO). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
FAT Brands, Inc. (NASDAQ: FAT)
Class Period: December 4, 2017 – February 18, 2022
Lead Plaintiff Deadline: May 17, 2022
The class action focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. FAT Brands is the subject of a report published by the Los Angeles Times on February 19, 2022. According to the Times, “Federal authorities have been investigating Andrew Wiederhorn, Chief Executive of the company that owns the Fatburger and Johnny Rockets restaurant chains, and examining one of his family member’s actions as part of an inquiry into allegations of securities and wire fraud, money laundering and attempted tax evasion, court records show.”
On this news, FAT Brands' stock fell $2.42, or 22.9%, to close at $8.14 per share on February 22, 2022, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) the Company and the Wiederhorns engaged in transactions “for no legitimate corporate purpose”; (2) the Company ignored warning signs relating to transactions with the Wiederhorns; (3) as a result, the Company was likely to face increased scrutiny, investigations, and other potential issues; (4) certain executives, who are touted as critical to the Company’s success, were at great risk of scrutiny-potentially, at least in part, due to the Company’s actions; (5) the Company's touted chief executive officer (CEO) and chief operating officer (COO) were under investigation regarding transactions with the Company; and (6) as a result, defendants’ public statements were materially false and/or misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
For more information on the FAT class action go to: https://bespc.com/cases/FAT
Cano Health, Inc. (NYSE: CANO)
Class Period: May 18, 2020 – February 25, 2022
Lead Plaintiff Deadline: May 17, 2022
On February 28, 2022, Cano Health, Inc., a primary care provider for seniors and underserved communities, announced that it will delay the release of Q4 and full year 2021 financials, previously scheduled for today due to the results of a recent internal audit. The audit found certain non-cash adjustments related to revenue recognition that may impact when and how the company accrues revenue related to Medicare Risk Adjustments.
On this news, Cano’s Class A common stock price fell $0.32 per share, or 6.17%, to close at $4.87 per share on February 28, 2022.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (i) Cano overstated its due diligence efforts and expertise with respect to acquiring target businesses; (ii) accordingly, Cano performed inadequate due diligence into whether the Company, post-Business Combination, could properly account for the timing of revenue recognition as prescribed by ASC 606, particularly with respect to Medicare risk adjustments; (iii) as a result, the Company misstated its capitated revenue, direct patient expense, accounts receivable, net of unpaid service provider costs, and accounts payable and accrued expenses; (iv) accordingly, the Company was at an increased risk of failing to timely file one or more of its periodic financial reports; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.
For more information on the Cano class action go to: https://bespc.com/cases/CANO
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Alexandra B. Raymond, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
