FAT Brands, Inc. (FAT) Accused of Misrepresenting Its Financial Figures in Its Offering Documents

According to the recently filed complaint, on October 23, 2017, FAT Brands, Inc. (FAT) held its IPO, selling 2 million shares of common stock priced at $12 per share, raising $24 million in gross proceeds. Company officials emphasized that FAT's asset-light business model allowed for growth with minimal capital expenditures through franchising, but failed to disclose that FAT's sales growth had significantly declined and that the fast-casual dining sector was facing slowdown in growth due to customers fleeing to cheaper, quicker fast-food chains. When the market learned the truth about FAT's business metrics and financial prospects, FAT's stock plummeted, and now trades at around $8 per share, a 30% decrease from its IPO price.

FAT Shareholders Have Legal Options

If you suffered a loss in FAT you have until October 23, 2018, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.

Concerned shareholders who would like more information about their rights and potential remedies can please send us a message via the Shareholder Information form below.