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Robbins Arroyo LLP: FAT Brands Inc. (FAT) Misled Shareholders According to a Recently Filed Class Action

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Shareholder rights law firm Robbins
Arroyo LLP
announces that purchasers of FAT Brands Inc. (NasdaqCM:
FAT) have filed a class action complaint against the company's officers
and directors for alleged violations of the Securities Act of 1933
pursuant to FAT's October 23, 2017 initial public offering ("IPO"). FAT,
a multi-brand franchising company, acquires, markets, and develops fast
casual and casual dining restaurant concepts.

View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/fat-brands-inc-2

FAT Accused of Misrepresenting Its Financial Figures in Its
Offering Documents

According to the complaint, on October 23, 2017, FAT held its IPO,
selling 2 million shares of common stock priced at $12 per share,
raising $24 million in gross proceeds. FAT officials subsequently
emphasized that FAT's asset-light business model allows for growth with
minimal capital expenditures through franchising. Despite these
representations, FAT's then-present free cash flow was not enough to
cover its outsized dividend. In addition, at the time of the IPO, FAT
failed to disclose that its 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 less than $8 per share, a 34%
decrease from its IPO price.

FAT Shareholders Have Legal Options

Concerned shareholders who would like more information about their
rights and potential remedies can contact attorney Leonid Kandinov at
(800) 350-6003, LKandinov@robbinsarroyo.com,
or via the shareholder
information form
on the firm's website.

Robbins Arroyo LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional investors
in shareholder derivative and securities class action lawsuits, and has
helped its clients realize more than $1 billion of value for themselves
and the companies in which they have invested. Sign up for our FREE
portfolio monitoring service, Stock
Watch
.

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