Legal troubles, especially those involving financial misconduct, tend to have a negative impact on a company's stock price due to potential fines, reputational damage, and the distraction it causes to management. In the case of Fat Brands, the indictment directly implicates the company and its chair, making it highly relevant and important news for investors. The confidence in the analysis is high due to the typical market reaction to such news, although the full extent of the impact may depend on future developments in the case.