Lawsuit filed for Investors in shares of Xponential Fitness, Inc. (NYSE: XPOF)

0

A lawsuit was filed in the U.S. District Court for the Central District of California by an investor who bought shares of Xponential Fitness, Inc. (NYSE: XPOF) alleging that the company violated federal securities laws in relation to some purportedly false and misleading statements made between July 26, 2021, and December 7, 2023.

You have specific options, and for some investors, there are tight deadlines, if you bought a sizable quantity of shares of Xponential Fitness, Inc. (NYSE: XPOF) between July 26, 2021 and December 7, 2023, and/or if you bought any NYSE: XPOF shares before July 2021 and you still own any of those shares. It ends on April 9, 2024. NYSE: Investors in XPOF should get in touch with the Shareholders Foundation by phone at +1(858) 779-1554 or via email at [email protected].

Xponential Fitness, Inc., a company established in Irvine, California, is a boutique fitness franchisor in North America through its subsidiaries. According to Xponential Fitness, Inc., its yearly Total Revenue increased from $155.07 million in 2022 to $244.95 million in 2022; also, its $18.82 million Net Loss in 2021 was transformed into $21.21 million in Net Income.

Fuzzy Panda Research published a brief report on Xponential’s activities on June 27, 2023. The CEO’s Secret Past Includes a Bangkok Boiler Room Pump & Dump; Deceptive & Cheating Partners, according to the articleInterviews and Disclosure Documents Show a Rising Number of Failing Franchisees and Kickbacks

Then, on December 7, 2023, Businessweek released an article titled Club Pilates, Pure Barre Owners Say Xponential Left Them Bankrupt. In it, they revealed that Xponential had deceived numerous franchisees into a financial nightmare through interviews with dozens of former employees, business partners, and franchisees. The article went on to say that defendant Geisler had a history of aggressive management, using growth-at-all-costs strategies and taking harsh measures against anyone who stands in his way. The price of Xponential’s common shares dropped by more than 26% in two trading days as a result of this news.Xponential Fitness, Inc. (NYSE: XPOF) saw a decrease in share price from $33.58 on May 01, 2023, to $9.61 on February 20, 2024.

In the complaint, the plaintiff claims that the defendants broke federal securities laws while selling common shares of Xponential Fitness, Inc. (NYSE: XPOF) between July 26, 2021 and December 7, 2023. More specifically, the plaintiff claims that between July 26, 2021 and December 7, 2023, the defendants made false and/or misleading statements and/or failed to disclose that Xponential Fitness, Inc. had permanently closed at least 30 stores, that Xponential s reported same-store sales ( SSS ) and average unit volume ( AUV ) metrics had been misstated by excluding underperforming stores, that 8 out of 10 Xponential Fitness, Inc. brands were losing money monthly, that over 50% of Xponential Fitness, Inc. studios did not make a positive financial return; (v) over 60% of Xponential s revenue was one-time and non-recurring, that more than 100 of Xponential s franchises were for sale at a price that is at least 75% less than their initial cost, that Xponential Fitness, Inc. had misled many of its franchisees into opening franchises by misrepresenting the financial profile and profitability of its studios, as well as the expected rate of return for new studio openings, and that many Xponential Fitness, Inc. franchisees were substantially in debt, suffering high attrition rates and running non-viable studios that had no realistic path to profitability

Shareholders Foundation should be contacted by those who bought shares in Xponential Fitness, Inc. (NYSE: XPOF) as they have certain choices.

Get in touch with Investors Foundation, Inc.Michael Daniels: +1-(858)-779-1554; 3111 Camino Del Rio North, Suite 42392108, San Diego(858)[email protected] is the fax number.

About The Shareholders Foundation, Inc.: We are a professional portfolio monitoring and settlement claim filing service that keeps investors informed about securities class actions, settlements, judgments, and other legal news pertaining to the stock and financial markets. We also conduct research on shareholder issues. With a vast network of contacts, Shareholders Foundation, Inc. provides support, guidance, and aid to each and every shareholder. It is not a law firm, The Shareholders Foundation, Inc. The Shareholders Foundation is not involved in the filed, reached, or settled cases, investigations, or settlements mentioned. The public is offered this information as a service. It should not be relied upon and is not meant to be legal advice.

Leave A Reply

Your email address will not be published.