Fat Brands Beats Investor’s Lawsuit Over Federal Founder Probes

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 ...