FAT Brands Issues Statement Regarding SOX 402 Charges; Says "These Charges Are Unprecedented, Unwarranted, Unsubstantiated, And Unjust. They Are Based On Conduct That Ended Over Three Years Ago And Ignore The Company's Cooperation With The Investigation."
Portfolio Pulse from Benzinga Newsdesk
FAT Brands Inc. has been indicted on two violations of SOX 402, related to arranging $2.65 million in loans to Andy Wiederhorn. The company describes these charges as unprecedented and unjust, highlighting that the alleged conduct ended over three years ago and that the company has cooperated with the investigation. FAT Brands intends to defend itself vigorously while seeking a fair resolution. Despite the legal challenges, FAT Brands emphasizes its significant growth and commitment to its operating plans and growth strategy.
May 10, 2024 | 3:55 pm
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NEGATIVE IMPACT
FAT Brands Inc. is facing legal challenges due to SOX 402 charges related to past financial arrangements. The company has expressed its intention to defend itself and maintain its growth trajectory.
Legal challenges, especially those involving financial misconduct allegations, tend to negatively impact investor confidence and can lead to short-term stock price declines. Despite FAT Brands' strong defense and emphasis on past growth, the uncertainty surrounding legal outcomes may overshadow operational achievements in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100