Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson encourages investors who have suffered losses in excess of $50,000 in Xponential Fitness to contact him directly to discuss their options
New York, NY – (Newsfile Corp. – April 2, 2024) – Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Xponential Fitness, Inc. (“Xponential Fitness” or the “Company”) 
XPOF and reminds investors of the April 9, 2024 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company.
If you suffered losses over $50,000 investing in Xponential Fitness stock or options between July 26, 2021 and December 7, 2023 and would like to discuss your legal rights, call a Faruqi & Faruqi partner Josh Wilson direct at 877-247-4292 or 212-983-9330 (ext. 1310). You can also click here for additional information: www.faruqilaw.com/XPOF.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As described below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Xponential closed final at least 30 stores; (2) Xponential’s reported same-store sales (“SSS”) and average unit volume (“AUV”) metrics were misstated by excluding underperforming stores; (3) 8 out of 10 Xponential brands lose money monthly; (4) over 50% of Xponential studios have not made a positive financial return; (5) over 60% of Xponential’s revenue was one-time and non-recurring; (6) more than 100 of Xponential’s franchises were for sale at a price that was at least 75% below their original price; (7) Xponential misled many of its franchisees into opening franchises by misrepresenting the financial profile and profitability of its studios and the expected rate of return for opening new studios; and (8) many Xponential franchisees were significantly indebted, suffered from high attrition rates, and operated unviable studios that had no realistic path to profitability.
On June 26, 2023, Fuzzy Panda published a report on Xponential that, among other things, represented that: (i) Xponential’s CEO, Defendant Anthony Geisler, had a long history of misleading investors; (ii) Xponential made a series of misleading statements regarding its store closings and the overall financial condition of its franchisee base; (iii) more than 50% of Xponential studios never make a positive financial return; (iv) more than 100 Xponential franchises are sold at a price that is at least 75% lower than their original price; (v) 8 out of 10 Xponential brands lose money monthly; (vi) Xponential’s publicly reported SSS and AUV metrics misleadingly exclude underperforming stores; (vii) more than 60% of Xponential’s revenue is one-time and non-recurring; and (viii) at least 30 Xponential stores are permanently closed. Xponential’s common stock price fell more than 37% on the news.
Then, on December 7, 2023, Businessweek published an article titled “Club Pilates, Pure Barre owners say Xponential bankrupted them,” which stated that Businessweek interviewed dozens of former business partners, employees and Xponential franchisees who reveal that Xponential has misled many franchisees into a “financial nightmare.” The article also states that defendant Geisler “has a track record of combative management, employing growth-at-any-cost tactics and unleashing aggressive repression against anyone who gets in his way.” On the news, Xponential’s common stock price fell more than 26% in two trading days.
The court-appointed lead plaintiff is the investor with the greatest financial interest in the relief sought by the class that is adequate and typical of the class members, who leads and oversees the litigation on behalf of the putative class. Any member of the putative class may request the Court to serve as lead plaintiff through an attorney of its choosing, or may choose to do nothing and remain an absent class member. Your ability to participate in any recovery is not affected by the decision to serve as lead claimant or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding the conduct of Xponential Fitness to contact the firm, including whistleblowers, former employees, shareholders and others.
Lawyer advertisement. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Past results do not guarantee or predict a similar result with respect to any future matter. We welcome the opportunity to discuss your specific case. All communications will be treated confidentially.
To view the original version of this press release, please visit https://www.newsfilecorp.com/release/204009
