The U.S. Securities and Exchange Commission has dismissed its civil enforcement action against FAT Brands, Inc. and several of its executives, bringing a high-profile securities case to a close.
On March 27, 2026, the SEC filed a joint stipulation to dismiss, with prejudice, its litigation against FAT Brands and its former and current executives, Andrew Wiederhorn, Ron Roe, and Rebecca D. Hershinger. The decision resolves the Commission’s enforcement proceedings and underscores the regulator’s discretion in evaluating evidence developed during litigation.
The outcome highlights important considerations for corporate governance, regulatory enforcement, and compliance strategy within publicly listed companies.
The Enforcement Action
According to the SEC, the dismissal relates to Securities and Exchange Commission v. FAT Brands et al., filed in the United States District Court for the Central District of California on May 10, 2024.
On March 27, 2026, the Commission filed a joint stipulation with FAT Brands, Inc., Andrew Wiederhorn, Ron Roe, and Rebecca D. Hershinger to dismiss the civil enforcement action with prejudice. This form of dismissal prevents the claims from being refiled.
The SEC stated in the stipulation that its decision to seek dismissal was “based on the facts and circumstances of this case and in light of the evidence developed in discovery.” The Commission further clarified that the dismissal “does not reflect the SEC’s position on any other case.”
No additional allegations or findings were outlined in the litigation release accompanying the dismissal.
Penalties and Remedies
The SEC’s announcement confirms that the enforcement action has been terminated without the imposition of monetary penalties or injunctive relief.
The dismissal with prejudice signifies that:
- The litigation has been permanently resolved.
- No financial penalties, disgorgement orders, or compliance undertakings were specified in the release.
- The defendants face no further liability arising from the Commission’s claims in this matter.
The release does not provide details regarding settlements, admissions, or additional remedial measures.
Regulator’s Reasoning
According to the SEC, the decision to dismiss the case was grounded in the evidentiary record developed during discovery. The Commission emphasised that its action was taken at its discretion and based on the specific facts and circumstances of the litigation.
Importantly, the SEC clarified that the dismissal should not be interpreted as precedent or indicative of its position in other enforcement matters. This statement underscores the case-specific nature of regulatory decision-making and reflects the Commission’s broader commitment to impartial and evidence-based enforcement.
The litigation release does not identify statutory provisions or regulatory violations beyond referencing the civil enforcement action itself.
Business Impact and Compliance Takeaways
The dismissal of the SEC’s case against FAT Brands offers several practical lessons for companies and compliance professionals. It highlights the importance of robust legal defence, thorough documentation, and the evidentiary process in regulatory investigations. It also underscores the SEC’s discretion to discontinue proceedings when warranted by the factual record.
For corporate leaders and advisers, the outcome serves as a reminder that enforcement actions can evolve significantly during discovery. It further reinforces the importance of maintaining strong governance frameworks, transparent disclosures, and effective compliance systems to mitigate regulatory risk.
What Happens Next
The joint stipulation to dismiss with prejudice concludes the SEC’s enforcement action against FAT Brands and its executives. The litigation is formally closed, and the Commission has not indicated any further proceedings or related enforcement measures in connection with this matter.
No additional monitoring requirements or obligations were specified in the SEC’s announcement.
Case Details
| Detail | Information |
|---|---|
| Regulator | U.S. Securities and Exchange Commission |
| Release Number | Litigation Release No. 26510 |
| Date | March 27, 2026 |
| Case Name | Securities and Exchange Commission v. FAT Brands et al. |
| Court | U.S. District Court for the Central District of California |
| Case Number | No. 2:24-cv-03913-MCS-AGR |
| Jurisdiction | United States |
| Area of Law | Securities Enforcement |
| Outcome | Civil enforcement action dismissed with prejudice |