For more information, submit a form , email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003. The Allegations: Robbins LLP is Investigating Allegations that the Former CEO of Fat Brands Inc.
(FAT) Caused the Company to Violate Securities Laws According to the complaint, during the class period, defendants failed to disclose that Andrew A. Wiederhorn, the Company's Chairman and former CEO, had received improper payments from the Company, exposing Fat Brands to criminal liability. On May 10, 2024, the United States Attorney's Office for the Central District of California issued a press release entitled“Former CEO and Controlling Shareholder of Fat Brands Inc.
, Former CFO, and a Tax Advisor Indicted in Alleged Scheme to Conceal $47 million Paid to CEO in the Form of Shareholder Loans.” The press release revealed that“Andrew A. Wiederhorn, the former CEO and current controlling shareholder of [Fat Brands], has been indicted on federal charges alleging a scheme to conceal $47 million in distributions he received in the form of shareholder loans from the IRS, FAT's minority shareholders, and the broader investing public[.
]” It further stated that“Wiederhorn-assisted by FAT's [CFO] and his outside accountant at advisory firm Andersen – concealed millions of dollars in reportable compensation and taxable income and evaded the payment of millions of dollars in taxes, while causing FAT itself to violate the Sarbanes-Oxley Act's prohibition on direct and indire.