Securities Litigation Partner James (Josh) Wilson encourages investors who lost more than $50,000 in Xponential Fitness to contact him directly to discuss their options
If you invested in Xponential Fitness stock or options between July 26, 2021 and December 7, 2023 and suffered a loss of more than $50,000, please contact Faruqi and Faruqi Partners to discuss your legal rights. please call me. josh wilson direct in 877-247-4292 or 212-983-9330 (extension 1310). You can also click here for additional information. www.faruqilaw.com/XPOF.
There is no cost or obligation to you.
New York, New York–(Newsfile Corp. – February 24, 2024) – Faruqi & Faruqi, LLP, one of the nation’s leading securities law firms, has joined forces with Xponential Fitness, Inc. (“Xponential Fitness” or the “Company”). We are investigating potential claims against. “) 
XPOF We also remind investors that the deadline to seek the role of lead plaintiff in the federal securities class action lawsuit filed against us is April 9, 2024.
Faruqi & Faruqi is a leading, women-owned, minority national securities law firm with offices in New York, Pennsylvania, California, and Georgia.
As detailed below, the complaint alleges that the Company and its officers violated federal securities laws by making false and/or misleading statements and/or failing to disclose: are doing. (1) Xponential has permanently closed at least 30 stores. (2) Xponential’s reported same-store sales (“SSS”) and average unit sales (“AUV”) metrics were misstated by excluding underperforming stores; (3) 8 out of 10 of his companies under the Xponential brand were in the red every month. (4) More than 50% of his Xponential studios do not have positive financial returns. (5) over 60% of his Xponential revenue was one-time and non-recurring; (6) More than 100 of his Xponential franchises were sold for at least 75% less than their initial cost. (7) Xponential deceived many franchisees into opening franchises by lying about the studio’s financial condition and profitability and the expected rate of return for opening new studios. (8) Many Xponential franchisees were running unviable studios that were heavily in debt, suffered from high turnover rates, and had no realistic path to profitability.
On June 26, 2023, Fuzzy Panda published a report on Xponential, which revealed, among other things: (i) Xponential CEO Anthony Geisler has a long history of misleading investors. (ii) Xponential has made a series of misleading statements regarding store closures and the overall financial health of its franchisees; (iii) his 50% or more of Xponential’s studios have never had positive financial returns; (iv) over 100 of his Xponential franchises are sold for at least 75% less than their initial cost; (v) 8 out of 10 of his companies under the Xponential brand are losing money every month. (vi) His SSS and AUV metrics published by Xponential exclude underperforming stores which may be misleading. (vii) more than 60% of his revenue from Xponential is one-time and non-recurring; (viii) at least 30 of his Xponential stores have been permanently closed; Following this news, the price of Xponential common stock fell by more than 37%.
Then, on December 7, 2023, BusinessWeek published an article titled “Club Pilates, Pure Bar Owner Says Xponential Bankruptcy,” and BusinessWeek published an article titled “Club Pilates, Pure Bar Owner Says Xponential Bankruptcy,” in which BusinessWeek revealed Xponential’s former business partners, employees, and franchisees. It said interviews with dozens of members revealed that Xponential had misled many people. Franchisees find themselves in a “financial nightmare.” The article further stated that Geisler “has a track record of aggressive management, including a strategy of growth at all costs and aggressive retaliation against those who get in his way.” . Following this news, the price of Xponential common stock fell more than 26% in two trading days.
A court-appointed lead plaintiff is the investor with the greatest economic interest in the relief sought by the class and is an appropriate and typical class member to direct and oversee the litigation on behalf of the class. Any member of the putative class may petition the court to serve as lead plaintiff through an attorney of his or her choice, or may elect to take no action and remain an absent class member. . Your ability to participate in the recovery is not affected by your decision to become a lead plaintiff.
Faruqi & Faruqi, LLP also encourages anyone with information about Xponential Fitness’ conduct, including whistleblowers, former employees and shareholders, to contact the company.
Lawyer advertisement. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Previous results do not guarantee or predict similar results with respect to future matters. We welcome the opportunity to discuss your specific case. All communications will be treated as confidential.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/199062.
