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LOS ANGELES, Feb. 21, 2024 (Globe Newswire) — portnoy law firm is suing investors in Xponential Fitness, Inc. (NYSE: XPOF) on behalf of investors who purchased Xponential securities between July 26, 2021 and December 7, 2023 (the “Class Period”). notified that it has been woken up.
Investors are advised to consult an attorney Leslie F. Portnoycall 310-692-8883 or Email: lesley@portnoylaw.com to discuss your legal rights or click here To join a case via www.portnoylaw.com. The Portnoy Law Firm can provide a free case evaluation and discuss an investor’s options in pursuing a claim to recover losses.
The lawsuit alleges that during the class period, the defendants made materially false and/or misleading statements or failed to disclose material information regarding Xponential’s operations and financial health. Specifically, it alleges that Xponential:
- At least 30 stores will be permanently closed.
- The company misrepresented same-store sales (SSS) and average unit unit sales (AUV) metrics by excluding underperforming stores from the calculations.
- 8 out of 10 brands were operating at a monthly financial loss.
- We find that more than half of studios are unable to generate positive financial returns.
- We rely on one-time, non-recurring revenues for more than 60% of our total revenues.
- Sold over 100 franchises at least 75% below initial investment cost.
- Misrepresented the studio’s financial success and profitability and exaggerated the expected rate of return for new studios, deceiving many franchisees into opening franchises.
- Many franchisees were saddled with large amounts of debt, faced high turnover rates, and were forced to operate studios that were not financially viable and lacked a realistic path to profitability.
Based on these points, the lawsuit alleges that the defendants had no reasonable basis for making positive statements about Xponential’s business operations and future prospects.
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The Portnoy Law Firm represents investors in pursuing claims arising from corporate wrongdoing. The firm’s founding partners have recovered more than $5.5 billion for affected investors. Lawyer advertisement. Previous results do not guarantee similar results.
Leslie F. Portnoy, Esq.
Obtained CA and NY bar qualifications
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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