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Fat Brands Settles Derivative Lawsuits with Stockholders

Story Highlights
  • FAT Brands Inc. settled lawsuits from 2021 and 2022 regarding a merger and recapitalization.
  • The settlement includes governance changes and financial contributions, pending court approval.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Fat Brands Settles Derivative Lawsuits with Stockholders

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Fat Brands ( (FAT) ) just unveiled an update.

On August 1, 2025, FAT Brands Inc. reached a settlement agreement with its stockholders to resolve two derivative lawsuits filed in 2021 and 2022 related to a merger and recapitalization. The settlement involves corporate governance changes and a $10 million payment by the company’s insurers, with additional contributions of shares from Fog Cutter Holdings LLC. This agreement, pending court approval, will dismiss all claims without attributing liability to the defendants, potentially stabilizing the company’s governance and financial standing.

The most recent analyst rating on (FAT) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Fat Brands stock, see the FAT Stock Forecast page.

Spark’s Take on FAT Stock

According to Spark, TipRanks’ AI Analyst, FAT is a Neutral.

Fat Brands’ overall stock score is primarily impacted by its poor financial performance, characterized by significant losses, high leverage, and negative cash flow. Technical analysis provides some short-term positive signals, but the long-term outlook remains bearish. The valuation metrics indicate caution due to the company’s financial instability and unsustainable dividend yield.

To see Spark’s full report on FAT stock, click here.

More about Fat Brands

Average Trading Volume: 62,357

Technical Sentiment Signal: Sell

Current Market Cap: $37.44M

For a thorough assessment of FAT stock, go to TipRanks’ Stock Analysis page.

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