On October 9, 2025, FAT Brands Inc. issued a notice of settlement of stockholder derivative actions in the Delaware Court of Chancery. The notice informs shareholders that the settlement, agreed in an amended stipulation dated September 11, 2025, is pending court approval and involves derivative actions brought by shareholders James Harris and the Estate of Adam Christopher Vignola.
If the court approves the settlement, shareholders will be permanently barred from contesting the fairness, reasonableness, or adequacy of the settlement or pursuing the claims defined in the notice. The notice also provides shareholders the right to attend a hearing scheduled for December 17, 2025, at the Leonard L. Williams Justice Center in Wilmington, Delaware, to determine whether the settlement is approved and to finalize the order and judgment.
This settlement is significant because it resolves a prolonged litigation that has involved multiple board members, former executives, and a controlling shareholder, potentially reducing legal costs and uncertainty for FAT Brands. The outcome will also affect shareholder rights and could influence future governance decisions. The settlement’s approval would close a major legal dispute that has been pending since 2025, thereby impacting the company’s risk profile and investor confidence.
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