US Department of Justice Drops Charges Against FAT Brands Executives and Employees

The US Department of Justice has dropped all charges against Andrew Wiederhorn, FAT Brands, William Amon, and Rebecca Hershinger. The defendants had maintained their innocence, and the indictment involved no victims, no financial losses, and no criminal conduct. FAT Brands is poised to continue growing, with over 1,000 units in its development pipeline and more than 100 new store openings anticipated this year.

The U.S. Department of Justice (DOJ) has dismissed all charges against Andrew Wiederhorn, FAT Brands Inc. (NASDAQ: FAT), William Amon, and Rebecca Hershinger. The defendants had maintained their innocence, asserting that the case involved no criminal conduct, no victims, and no financial losses. The DOJ's decision to dismiss the charges follows a motion filed by the United States Attorney for the Central District of California.

The legal team representing the defendants, including Nick Hanna of Gibson Dunn, had consistently argued that the case lacked any basis for criminal charges. The dismissal of the indictment marks a significant victory for FAT Brands, allowing the company to focus on its growth strategy without the distraction of ongoing litigation.

FAT Brands Inc. is a leading global franchising company with a diverse portfolio of 18 restaurant concepts and over 2,300 locations worldwide. With the DOJ matter closed, the company is well-positioned to continue its growth trajectory. FAT Brands has over 1,000 units in its development pipeline, approximately 120 signed development agreements year-to-date, and more than 100 new store openings anticipated this year. The company's franchising model, co-branding options, and established restaurant concepts, such as Fatburger, Johnny Rockets, and Round Table Pizza, position it as a leader in the global dining landscape.

The dismissal of all charges removes a significant legal cloud that had been hanging over FAT Brands. The company can now operate without the distraction and expense of criminal proceedings or the reputational damage of ongoing litigation. This resolution enables FAT Brands to redirect resources from legal defense to business operations, potentially accelerating its growth plans.

The company's impressive operational metrics demonstrate its scale in the restaurant franchising space. With a diverse portfolio and a capital-light franchising model, FAT Brands is well-equipped to navigate the challenges of the current market. The dismissal of all charges against FAT Brands and its executives removes a major risk factor that likely constrained the company's valuation and strategic flexibility.

From a financial perspective, the resolution of legal uncertainty typically leads to multiple expansion as the risk premium investors demand decreases. This could potentially unlock shareholder value as the market reassesses FAT Brands with legal issues behind it. The company's growth trajectory through both organic expansion and strategic acquisitions demonstrates a clear path to increased scale, which should drive franchise fee and royalty revenue growth.

FAT Brands' co-branding opportunities represent an additional growth vector that can increase location profitability while expanding brand reach with minimal incremental investment. This strategy has proven successful in the restaurant space and positions FAT Brands for continued success.

The dismissal of all charges by the U.S. Attorney's Office represents a comprehensive legal victory for Andrew Wiederhorn, FAT Brands, and the other named defendants. This type of dismissal is relatively rare in federal prosecutions, particularly after an indictment has been issued, suggesting prosecutors concluded their case had fundamental weaknesses.

References:

[1] https://www.globenewswire.com/news-release/2025/07/30/3123707/0/en/U-S-Department-of-Justice-Drops-All-Charges-Against-Andrew-Wiederhorn-FAT-Brands-William-Amon-and-Rebecca-Hershinger.html

[2] https://www.stocktitan.net/news/FAT/u-s-department-of-justice-drops-all-charges-against-andrew-8hvcnwadncyd.html