The dispute centers on claims Alagna Advisors is bringing against Fat Brands Inc. and certain of its subsidiaries and affiliates in the Supreme Court of New York, New York County.
On April 23, 2026, Alagna Advisors filed a notice of removal to the United States District Court for the Southern District of New York, citing 28 U.S.C. §§ 1334(b) and 1452.
The removal notice asserts that federal bankruptcy jurisdiction exists because Fat Brands Inc. commenced Chapter 11 proceedings in the United States Bankruptcy Court for the Southern District of Texas.
The notice states that the claims asserted in this action are "related to" those pending bankruptcy proceedings.
The notice of removal further states that upon removal, Alagna Advisors "will file a motion to transfer venue to the Texas Bankruptcy Court."
Judge Lorna G. Schofield issued an order on April 24, 2026, directing Fat Brands Inc. to file a letter response by May 1, 2026.
The response must not exceed two pages single-spaced and must state Fat Brands Inc.'s position on the removal, including its stance on the proposed venue transfer.