Kaskela Law LLC Files Shareholder Class Action Lawsuit Against FAT Brands Inc. and Encourages Investors to Contact the Firm Before Important Deadline - FAT

RADNOR, Pa., Oct. 16, 2018 (GLOBE NEWSWIRE) -- Kaskela Law LLC has filed a shareholder class action lawsuit against FAT Brands Inc. (NASDAQ: FAT) (“FAT Brands” or the “Company”) on behalf of investors who purchased or acquired FAT Brands’ common stock pursuant and/or traceable to the Company’s October 23, 2017 initial public offering (“IPO”) of common stock.

IMPORTANT DEADLINE:  Investors who purchased FAT Brands’ common stock on or after October 23, 2017 may, no later than October 23, 2018, seek to be appointed as a lead plaintiff representative of the investor class. 

FAT Brands investors are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (888) 715 – 1740, or skaskela@kaskelalaw.com, to discuss their legal rights and options, or to request a copy of the shareholder complaint filed in this action.  Additional information about this action may also be found at http://kaskelalaw.com/case/fat-brands-inc/.

On or about October 23, 2017, FAT Brands completed its initial public offering (“IPO”) of common stock, selling shares to investors at $12.00 per share. 

The complaint alleges that defendants failed to disclose, in connection with the IPO, that: (1) FAT Brands’ sales growth had significantly declined; (2) sales growth at Ponderosa & Bonanza was significantly below the level which FAT Brands 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, largely caused by customers fleeing to lower cost and quicker options; (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; and (6) Fog Cutter Capital and the Wiederhorn family that owned it had already once run Fog Cutter Capital/Fatburger into bankruptcy, resulting in its stock being delisted after attempting to go on an acquisition spree, much like the spree they were undertaking at FAT Brands at the time of the IPO.

The value of FAT Brands’ common stock significantly declined as the market learned the truth about the Company’s business metrics and financial prospects.  FAT Brands’ common stock currently trades at approximately $7.00 per share, or approximately 40% lower than its IPO price one year earlier.

FAT Brands investors who purchased the Company’s common stock and suffered an investment loss are encouraged to immediately contact Kaskela Law LLC.  Kaskela Law LLC exclusively prosecutes shareholder actions in state and federal courts throughout the country on behalf of investors.  For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.

CONTACT:

KASKELA LAW LLC
D. Seamus Kaskela, Esq.
201 King of Prussia Road
Suite 650
Radnor, PA 19087
(484) 258 – 1585
(888) 715 – 1740
skaskela@kaskelalaw.com
www.kaskelalaw.com