Stull, Stull & Brody Announces Class Action Suit on Behalf of Purchasers of the Securities of FAT Brands, Inc. (NASDAQ: FAT)
NEW YORK, Aug. 31, 2018 (GLOBE NEWSWIRE) -- Stull, Stull & Brody (“SS&B”) announces that a class action lawsuit has been filed on behalf of purchasers of the securities of FAT Brands, Inc. (“FAT” or the “Company”), pursuant and/or traceable to the Company’s October 23, 2017 initial public offering (“IPO”).
The complaint alleges that the Company made materially false and misleading statements and omitted material facts in the Company’s Qualified Statement and Offering Circular in connection with the IPO. Specifically, the complaint alleges that defendants made materially false and/or misleading statements and/or failed to disclose that: (1) FAT Brands’ sales growth had significantly declined; (2) sales growth at Ponderosa & Bonanza was significantly below the level that it had believed when it agreed to acquire those brands in March 2017; (3) the fast-casual dining sector was saturated and facing significant headwinds and a slowdown in growth; (4) FAT Brands’ free cash flow was less than its annual $5 million dividend obligations; (5) the Wiederhorn family planned to merge Fog Cutter Capital Group Inc. into FAT Brands following the IPO; (6) Fog Cutter Capital and the Wiederhorn family that owned it had already once run Fog Cutter Capital/Fatburger into bankruptcy; and (7) as a result, FAT Brands’ public statements were materially false and misleading at all relevant times.
The complaint alleges that following the market learning the truth about FAT Brands’ business metrics and financial prospects that existed at the time of the IPO, the value of FAT Brands’ securities declined significantly.
Investors who purchased or otherwise acquired FAT securities pursuant and/or traceable to the Company’s October 23, 2017 IPO may contact Stull, Stull & Brody, by email to firstname.lastname@example.org, by telephone at 1-212-687-7230, Ext. 145, or by fax to 1-212-490-2022.
You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action.
SS&B has litigated class actions for violations of securities laws and breaches of fiduciary duty on behalf of defrauded investors over the past 40 years and has obtained court approval of substantial settlements on numerous occasions. SS&B has offices in New York and Beverly Hills. SS&B’s website ( www.ssbny.com ) has additional information about the firm.
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CONTACT:Stull, Stull & Brody1-212-687-7230, Ext. 145Attn: Jason D’AgnenicaEmail: email@example.com