FAT Brands and shareholders propose a $10 million settlement for two lawsuits accusing CEO Andy Wiederhorn of “self-dealing” and fund misuse. One lawsuit alleges insider loans and debt forgiveness, the other claims creation of “super-voting stock” for Wiederhorn. Proposed settlement includes cash payment, share transfer, and governance reforms.

The proposed settlement addresses the lawsuit filed by former FAT Brands investor Mitchell Kates in June 2024, separate from the Harris lawsuits. DOJ dropped criminal charges against Wiederhorn in July 2025, while SEC civil charges are under appeal. Approval of settlement would end Harris cases and protect Wiederhorn from further lawsuits on the matter.

If the court approves the settlement, the lawsuits will end immediately, and Wiederhorn and associates will be protected from further litigation on the same issues. A settlement hearing is scheduled for December. Contact Joanna at [email protected] for more information.

Read more at Yahoo Finance: FAT Brands and investors move to settle lawsuit over alleged misuse of company funds