Fat Brands shares slump after co, former CEO indicted in alleged $47 mln loan scheme
10/05/2024 18:01
** Shares of Fatburger's parent Fat Brands FAT.O slump
26.6% to $5.87
** Fat Brands and its chair and former CEO Andrew Wiederhorn
have been indicated for allegedly concealing $47 million in
distributions he received in the form of shareholder loans, US
DOJ says
** The shareholder loans came from the IRS, FAT's minority
shareholders and the broader investing public, according to DOJ
** According to the indictment, Wiederhorn was assisted by
FAT's CFO, and his outside accountant at advisory firm Andersen
concealed and evaded the payment of millions of dollars in taxes
** FAT Brands, in a statement, on Friday says, "these
charges are unprecedented, unwarranted, unsubstantiated, and
unjust"
** Co adds it will take all necessary action to defend
itself while seeking a just resolution to these charges
** Wiederhorn, 58, stepped down from helm last year
** FAT up 21% YTD
(Reporting by Annett Mary Manoj in Bengaluru)
((AnnettMary.Manoj@thomsonreuters.com))