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DOJ Dismisses All Charges Against Fat Brands and Its Chairman

The White House’s firing of the lead prosecutor preceded prosecutors’ unopposed motion to abandon the criminal case.

A Fatburger restaurant in Atlanta.
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Overview

  • Federal prosecutors filed unopposed motions on July 30 to drop wire fraud, tax evasion and firearm-possession counts against Andy Wiederhorn, two associates and Fat Brands Inc.
  • Wiederhorn was indicted in May 2024 over an alleged $47 million sham loan scheme and has consistently denied wrongdoing while pledging to refocus on corporate growth.
  • The dismissal followed the March removal of Assistant U.S. Attorney Adam Schleifer by the White House, prompting questions about political influence on Justice Department decisions.
  • A separate Securities and Exchange Commission civil complaint against Fat Brands and Wiederhorn for the same conduct remains active.
  • Shares of Fat Brands rose after the announcement as investors reacted to the end of the federal prosecution against the owner of Fatburger, Johnny Rockets and Great American Cookies.