If you invested in FAT and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses »

03/24/2022 - 05/10/2024


Complaint 06/07/24


[email protected]

The complaint alleges that FAT made misstatements and failed to disclose that its current Chairman and former CEO Andrew A. Wiederhorn received improper payments from it, thereby exposing the company to criminal liability.

In the past FAT has disclosed- and given repeated assurances- that it was cooperating with the U.S. Department of Justice and SEC in their investigations of the company’s transactions with Wiederhorn “as well as compensation, extensions of credit and other benefits or payments received by Mr. Wiederhorn or his family” from the company and its Dec. 2020 merger partner (Fog Cutter Capital Group, or “FOG”). The company also repeatedly assured investors that its financial statements were accurate and its internal controls over financial reporting were sufficient.

The truth which emerged on May 9, 2024 tells a much different story. That day, the DOJ unveiled a grand jury criminal indictment of FAT, Wiederhorn, tax advisor William J. Amon, and FAT CFO Rebecca D. Hershinger. The indictment alleges, in part, that “Wiederhorn caused defendant FAT and FOG to extend, maintain, and forgive approximately $47 million in compensation to him in the form of sham shareholder loans, which he and defendant Amon knew were ‘disguised compensation[.]’”

The indictment also alleges that after FAT and Wiederhorn learned on or around Dec. 1, 2021 that Wiederhorn was a target of a federal criminal investigation into the company’s and Wiederhorn’s financial dealings, members of the company’s board of directors communicated with the government about its investigation and that on or around Mar. 28, 2023, Wiederhorn removed all directors other than himself and stacked the board with a majority of non-independent directors under his control.

This news sent the price of FAT Class A and B shares, Series B Preferred shares, and Warrants crashing lower on May 10, 2024.


What is the FAT securities class-action case about?

Our investigation centers on the extent to which FAT understated its compensation expenses and overstated earnings metrics.


I worked at FAT. What should I do?

If you were an employee of FAT, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.


What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.


Am I affected? What do I need to do to participate?

If you were an investor in FAT, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any FAT investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.

Media Images

Hagens Berman purchases advertisements on search engines, social media sites and other websites. Transmission of the information contained or available through this website is not intended to create, and receipt does not constitute, an attorney-client relationship. If you seek legal advice or representation by Hagens Berman, you must first enter a formal agreement. All information contained in any transmission is confidential and Hagens Berman agrees to protect information against unauthorized use, publication or disclosure. This site is regulated by the Washington Rules of Professional Conduct.