NEW YORK, Oct. 11, 2018 — Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action lawsuit has been filed against FAT Brands, Inc. (“FAT Brands” or the “Company”) (NASDAQ: FAT) in the United States District Court for the Central District of California on behalf of a class consisting of investors who purchased or otherwise acquired FAT Brands securities pursuant and/or traceable to FAT Brands’ initial public offering (“IPO”) conducted on or around October 20, 2017 at $12.00 per share.
Investors who have incurred losses in the shares of FAT Brands, Inc. are urged to contact the firm immediately at [email protected] or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action on our website, www.whafh.com.
If you have incurred losses in the shares of FAT Brands, Inc., you may, no later than October 23, 2018, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights as an investor in FAT Brands, Inc.
The filed Complaint alleges Defendants made materially false and/or misleading statements and/or failed to disclose that:
- FAT Brands’ sales growth had significantly declined;
- sales growth at Ponderosa & Bonanza was significantly below the level which FAT Brands had believed when it agreed to acquire those brands in March 2017;
- the fast-casual dining sector was saturated and facing significant headwinds and a slowdown in growth, largely caused by customers fleeing to lower cost and quicker options;
- FAT Brands’ free cash flow was less than its annual $5 million dividend obligations;
- the Wiederhorn family planned to merge Fog Cutter Capital Group Inc. into FAT Brands following the IPO;
- Fog Cutter Capital and the Wiederhorn family that owned it had already once run Fog Cutter Capital/Fatburger into bankruptcy, resulting in its stock being delisted after attempting to go on an acquisition spree, much like the spree they were undertaking at FAT Brands at the time of the IPO; and
- as a result, FAT Brands’ public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
Wolf Haldenstein Adler Freeman & Herz LLP has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at [email protected], or visit our website at www.whafh.com.
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Wolf Haldenstein Adler Freeman & Herz LLP Kevin Cooper, Esq. Gregory Stone, Director of Case and Financial Analysis Email: [email protected], [email protected] or [email protected] Tel: (800) 575-0735 or (212) 545-4774
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