IMPORTANT INVESTOR NOTICE: The Schall Law Firm Announces the Filing of a Class Action Lawsuit Against FAT Brands Inc. and Encourages Investors with Losses in Excess of $100,000 to Contact the Firm
LOS ANGELES--(BUSINESS WIRE)--Aug 24, 2018--The Schall Law Firm, a national shareholder rights litigation firm, announces the filing of a class action lawsuit against FAT Brands Inc. (“FAT Brands” or the “Company”) (NASDAQ: FAT ) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
Investors who purchased the Company’s shares pursuant and/or traceable to the Company’s initial public offering (“IPO”) on or around October 23, 2017, are encouraged to contact the firm before October 23, 2018.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall, or Sherin Mahdavian, of the Schall Law Firm, 1880 Century Park East, Suite 404, Los Angeles, CA 90067, at 424-303-1964, to discuss your rights free of charge. You can also reach us through the firm’s website at www.schallfirm.com, or by email at firstname.lastname@example.org.
The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
According to the Complaint, the Company made false and misleading statements to the market. FAT Brands’ overall sales growth had declined considerably. In particular, sales growth at Bonanza and Ponderosa restaurants were quite slower than what FAT Brands expected when it acquired the brands in early 2017. The fast-casual dining concept favored by the Company was facing saturation as well as pressure to keep customers from going to lower cost restaurants. At the same time, FAT Brands’ free cash flow was lower than the $5 million dividend obligations the Company faced. Based on these facts, the Company’s public statements were false and materially misleading at the time of the IPO. When the market learned the truth about FAT Brands, investors suffered damages.
Join the case to recover your losses.
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
View source version on businesswire.com:https://www.businesswire.com/news/home/20180824005459/en/
CONTACT: The Schall Law Firm
Brian Schall, Esq.
Sherin Mahdavian, Esq.
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL
SOURCE: The Schall Law Firm
Copyright Business Wire 2018.
PUB: 08/24/2018 09:37 PM/DISC: 08/24/2018 09:37 PM