Fat Brands Beats Investor’s Lawsuit Over Federal Founder Probes

Oct. 16, 2025, 6:57 PM UTC

Restaurant franchiser Fat Brands Inc., as well as current and former leadership, defeated shareholder allegations of misrepresenting its cooperation with federal investigations into a 2020 merger and founder-CEO Andrew Wiederhorn.

The investor leading the proposed class lawsuit failed to sufficiently allege an inference of intent or recklessness to deceive by former co-CEOs about related-party transactions concerning Wiederhorn, Judge Michael W. Fitzgerald said in a filing Wednesday memorializing an in-chambers order. The stockholder’s argument on a mental state to defraud regarding the government’s investigations rested on statements the US District Court for the Central District of California judge found ...

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