An investor in Fat Brands Inc., owner of dining chains including Fatburger and Johnny Rockets, filed suit in Delaware against its board and backers, claiming a private equity executive who previously did time in federal prison looted the company in connection with its take-private buyout.
The derivative lawsuit, made public Wednesday, targets Fat Brands controlling stockholder Fog Cutter Capital, an investment vehicle for ex-banking executive Andrew Wiederhorn, who served 16-months on tax and corporate bribery charges.
The suit accuses Wiederhorn of “running Fat Brands into the ground, and bleeding it of its cash,” by having Fog Cutter give him loans ...
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