By On Tuesday, FAT Brands announced that its founder and chairman, Andrew Wiederhorn, along with a current and former officer of the company, have each received a Wells Notice from the Securities and Exchange Commission (SEC). But what exactly does this mean?
Understanding the Wells Notice
A Wells Notice is a communication from the U.S. securities regulator indicating that an investigation has been concluded and proceedings may be taken against the individuals involved. It is important to note that receiving a Wells Notice is not an official accusation of wrongdoing or a confirmation of any violations of the law.
Background on the Investigation
FAT Brands clarified that all activities related to the investigation and the Wells Notices took place during or before fiscal year 2020. Earlier this year, the company underwent significant board changes and committee dissolutions as part of the ongoing government inquiry.
Cooperation and Response
Despite the investigations by the U.S. Attorney’s Office for the Central District of California and the SEC, FAT Brands asserts that it has acted appropriately throughout the process. The company remains committed to cooperating with the SEC and plans to engage in the Wells Notice procedure by providing a formal response.
As the situation unfolds, FAT Brands aims to address any concerns raised by the investigations through active participation in the review process.
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