HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages Investors in FAT Brands (FAT) with Significant Losses to Contact Firm's Attorneys Concerning Investigation Into Possible Securities Law Violations
SAN FRANCISCO, Feb. 25, 2022 /PRNewswire/ -- Hagens Berman urges FAT Brands Inc. (NASDAQ: FAT) investors with significant losses to submit your losses now. The firm is investigating possible violations of the securities laws.
Visit: www.hbsslaw.com/investor-fraud/FAT
Contact An Attorney Now: [email protected]
844-916-0895
FAT Brands Inc. (FAT) Investigation:
The investigation focuses on FAT Brands' statements about the company's compliance with relevant accounting rules and the effectiveness of its internal controls over financial reporting.
More specifically, in Nov. 2021 FAT Brands' senior management downplayed weaknesses in the company's internal controls regarding the segregation of duties and the financial close process.
But on Feb. 19, 2022, 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 Times reported the affidavit: (1) identified years of credit card purchases by Wiederhorn and his family paid primarily by accounts held by an affiliate of FAT Brands; (2) alleged that Wiederhorn "generated millions of American Express rewards points by routing company money through his son's PayPal account," and (3) concluded "there was probable cause that Wiederhorn 'engaged in the following criminal conduct,' including […] misrepresentations to investors."
Then, on Feb. 22, 2022, FAT Brands announced that during Dec. 2021 the U.S. Attorney's Office and the SEC opened investigations concerning compensation, extensions of credit and other payments received by Wiederhorn or his family.
These events drove the price of FAT Brands shares sharply lower on Feb. 22, 2022.
"We're focused on investors' losses and whether 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 @[email protected].
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
SOURCE Hagens Berman Sobol Shapiro LLP
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