NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in California state court against the officers and directors of FAT Brands, Inc. (NASDAQ: FAT) for violations of federal securities law in connection with FAT Brands’ Initial Public Offering (“IPO”) on October 23, 2017.
In its IPO, FAT sold 2 million shares of common stock for $12 per share, raising $24 million. The complaint alleges that at the time of the IPO, FAT failed to disclose that the Company’s free cash flow was insufficient to cover its dividend, and that its sales growth had declined markedly. When this information was revealed to the market, FAT’s share price declined and now trades below $8 per share – a 34% decrease from the IPO price.
If you purchased or otherwise acquired FAT shares traceable to the IPO and suffered a loss, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at email@example.com, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information concerning the FAT Brands, Inc. lawsuit, please go to http://www.bespc.com/fat. For additional information about Bragar Eagel & Squire, P.C., please go to www.bespc.com.