FAT Brands Investigation: Robbins LLP Investigates FAT Brands Inc. (FAT, FATBB, FATBP, FATBW) on Behalf of Stockholders

SAN DIEGO--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP is investigating FAT Brands Inc. (NASDAQ: FAT) and its officers and directors to determine whether they breached their fiduciary duties and violated securities law. Fat Brands purports to be a franchising company that acquires, develops, and markets quick-service, fast casual and casual dining restaurants.

If you would like more information about our investigation of FAT Brands Inc.'s misconduct, click here.

What is this Case About: According to a class action complaint filed against Fat Brands, on February 19, 2022, the Los Angeles Times published an article entitled "Family behind Fatburger under investigation for alleged fraud, money laundering, records show," which revealed investigations into the Company's CEO, Andrew Wiederhorn, and his COO son in connection with the Company. The article revealed that the CEO had "devised and executed a fraudulent scheme" to avoid paying taxes and received "millions of dollars in sham loans" through his companies. The article also noted "an alleged scheme to route millions of dollars of company money through American Express charges to a PayPal account bearing [Thayer Wiederhorn's] name." This scheme generated $250,000 in fees to PayPal "for no legitimate corporate purpose."

This is not the first time Andrew Wiederhorn has encountered legal trouble. In 2004, he pleaded guilty to charges of paying an illegal gratuity to an associate and filing a false tax return. He spent 15 months in prison and paid a $2 million fine.

On February 22, 2022, the Company filed with the SEC a Form 8-K announcing that the FBI had opened investigations in December 2021. On this news, FAT Brands stock fell.

Next Steps: If you acquired shares of FAT Brands Inc. (FAT) between December 4, 2017 and February 18, 2022, you have legal rights.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

Contact us to learn more:

Aaron Dumas
[phone]
[e-mail]
Shareholder Information Form

About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against FAT Brands Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.

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