FAT Brands Issues Notice of Settlement of Stockholder Derivative Actions

Core Points - FAT Brands Inc. is involved in derivative lawsuits concerning alleged breaches of fiduciary duties by its former Board members and controlling stockholders [5][10][19] - A proposed settlement has been reached, which includes a cash payment and corporate governance reforms [30][31][42] Group 1: Background of the Actions - The lawsuits were initiated by stockholders James Harris and the Estate of Adam Christopher Vignola against former Board members and controlling stockholders of FAT [5][10] - The allegations include misuse of corporate assets and unfair transactions, particularly related to a merger with Fog Cutter Capital Group and a recapitalization transaction [9][19][43] Group 2: Settlement Details - The settlement includes a cash payment of $10 million and the surrender of 200,000 shares of Twin Hospitality Group, Inc. Class A Common stock to FAT [30][31] - Corporate governance reforms will be implemented, including the establishment of a Related Party Transactions Committee and amendments to the Corporate Governance Guidelines [31][33] Group 3: Legal Proceedings - The Court has scheduled a Settlement Hearing for December 17, 2025, to consider the fairness and adequacy of the proposed settlement [46] - The settlement aims to resolve ongoing litigation and provide benefits directly to FAT and its stockholders [29][42]