Core Points - FAT Brands and its shareholders have proposed a $10 million joint settlement for two derivative lawsuits against CEO Andy Wiederhorn and his affiliates, alleging "self-dealing" and "misuse of funds" [1] - The lawsuits accuse Wiederhorn of taking tens of millions of dollars through insider loans and creating a class of "super-voting stock" for himself after a merger, which allegedly unjustly enriched him [1] - The proposed settlement includes a cash payment of $10 million, the transfer of 200,000 shares from Twin Hospitality Group to FAT Brands, and the implementation of corporate governance reforms [1] Legal Context - The proposed settlement is distinct from a separate lawsuit filed in June 2024 by former investor Mitchell Kates, which also alleges financial misconduct [2] - The Harris lawsuits are connected to previous investigations by the U.S. Department of Justice and the Securities and Exchange Commission, with the DOJ dropping its charges in July 2025, while SEC civil charges remain under appeal [2] Settlement Implications - If the court approves the settlement, the lawsuits will conclude immediately, and Wiederhorn and his associates will be protected from being sued again for the same issues [3] - A settlement hearing is scheduled for December [3]