litigation
confidence high
sentiment positive
materiality 0.65
FAT Brands settles derivative lawsuits; gets $10M from insurers and 200K Twin Hospitality shares
Fat Brands, Inc
- Settlement resolves two Delaware Chancery derivative actions filed in 2021 and 2022 without admitting liability.
- Company's insurers will pay $10 million, from which plaintiffs' counsel fees and expenses will be deducted.
- Fog Cutter Holdings LLC will contribute 200,000 shares of Twin Hospitality Group Inc. to FAT Brands.
- Board agreed to adopt corporate governance modifications as part of settlement terms.
- Settlement requires approval by Delaware Court of Chancery; if approved, all derivative claims dismissed.