NEW YORK, March 27, 2022 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, reminds investors that class action lawsuits have been filed on behalf of shareholders of FAT Brands, Inc. (NASDAQ: FAT) and Cano Health, Inc. (NYSE: CANO). Shareholders have until the deadlines below to ask the court to serve as lead plaintiff. Additional information on each case can be found at the link provided.
FAT Brands, Inc. (NASDAQ: FAT)
Course period: December 4, 2017 – February 18, 2022
Lead Applicant Deadline: May 17, 2022
The class action seeks to determine whether the Company made false and/or misleading statements and/or failed to disclose relevant information to investors. FAT Brands is the subject of a report published by the Los Angeles Times on February 19, 2022. According to the Times, “Federal authorities have investigated Andrew Wiederhorn, chief executive of the company that owns the Fatburger and Johnny Rockets restaurant chains, and examining the actions of a family member in an investigation into allegations of securities and wire fraud, money laundering and attempted tax evasion, court records show.
On this news, shares of FAT Brands fell $2.42, or 22.9%, to close at $8.14 per share on Feb. 22, 2022, hurting investors.
The Complaint filed in this Class Action alleges that throughout the Class Period, the Defendants made materially false and/or misleading statements, and failed to disclose material adverse facts regarding the business, operations and societal prospects. Specifically, the defendants failed to disclose to investors: (1) the company and the Wiederhorns engaged in transactions “without a legitimate business purpose”; (2) the company ignored warning signs relating to transactions with the Wiederhorns; (3) as a result, the Company was subject to heightened scrutiny, investigations and other potential issues; (4) certain officers, who are portrayed as critical to the Company’s success, were at great risk of scrutiny, at least in part, because of the Company’s actions; (5) the company’s chief executive officer (CEO) and chief operating officer (COO) were under investigation regarding transactions with the company; and (6) as a result, the defendants’ public statements were materially false and/or misleading at all relevant times. When the real details entered the market, the lawsuit claims investors suffered damages.
For more information on the FAT class action, go to: https://bespc.com/cases/FAT
Cano Health, Inc. (NYSE:CANO)
Course period: May 18, 2020 – February 25, 2022
Lead Applicant Deadline: May 17, 2022
On February 28, 2022, Cano Health, Inc., a primary care provider for seniors and underserved communities, announced that it would delay the release of fourth quarter and full year 2021 financial statements, originally scheduled for today due to the results of a recent internal audit. . The audit revealed certain non-cash adjustments related to revenue recognition that may impact when and how the company recognizes revenue related to Medicare risk adjustments.
On this news, the price of Cano’s Class A common stock fell $0.32 per share, or 6.17%, to close at $4.87 per share on February 28, 2022.
The Complaint filed in this Class Action alleges that throughout the Class Period, the Defendants made materially false and/or misleading statements, and failed to disclose material adverse facts regarding the business, operations and societal prospects. Specifically, the defendants failed to disclose to investors: (i) Cano overstated its due diligence efforts and expertise in acquiring target businesses; (ii) as a result, Cano performed inadequate due diligence to determine whether the Company, post-business combination, could properly account for the timing of revenue recognition as prescribed by ASC 606, particularly with respect to relates to Medicare risk adjustments; (iii) as a result, the Company misreported its capitation revenues, direct patient expenses, accounts receivable, net of unpaid service provider costs, and accounts payable and accrued liabilities; (iv) as a result, the Company was at increased risk of not filing one or more of its periodic financial reports on time; and (v) as a result, the Company’s public statements were materially false and misleading at all material times.
For more information on the Cano class action, please visit: https://bespc.com/cases/CANO
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation before state and federal courts across the country. For more information about the company, please visit www.bespc.com. Lawyer advertisement. Prior results do not guarantee similar results.
Bragar Eagel & Squire, CP Brandon Walker, Esq. Alexandra B. Raymond, Esq. (212) 355-4648 [email protected]www.bespc.com