FAT Brands Inc. (NASDAQ: FAT), the parent company of multiple restaurant chains, disclosed that its CEO Andrew Wiederhorn and two other officials have received Wells Notices from the U.S. Securities and Exchange Commission (SEC).
The investigation focuses on activities up to the fiscal year 2020, according to the company.
A Wells Notice is a communication issued by the SEC's enforcement staff, indicating that it is considering recommending enforcement action against the recipient. It allows the recipients to argue why the SEC should not proceed with such action.
The company and the involved officers, including a current and a former officer whose names were not disclosed, have the opportunity to respond formally to the SEC's concerns. FAT Brands has expressed its intention to engage fully in the Wells Notice process.
This news article is based on information from a recent SEC filing by FAT Brands.
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