NEW YORK, March 18, 2024 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP:
- Do you, or did you, own shares of Xponential Fitness, Inc. (NYSE: XPOF)?
- Did you purchase your shares between July 26, 2021 and December 7, 2023, inclusive?
- Did you lose money in your investment in Xponential Fitness, Inc.?
- Do you want to discuss your rights?
Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, reminds investors of the deadline to file a lead plaintiff motion in a securities class action lawsuit that has been filed on behalf of investors who purchased or acquired the Class A common stock of Xponential Fitness, Inc. (“Xponential” or the “Company”) (NYSE: XPOF) between July 26, 2021 and December 7, 2023, inclusive (the “Class Period”). The lawsuit was filed in the United States District Court for the Central District of California and alleges violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
If you purchased or acquired Xponential Class A common stock, and/or would like to discuss your legal rights and options please visit Xponential Fitness, Inc. Shareholder Class Action Lawsuit or contact Investor Relations Manager Peter Allocco at (212) 951-2030 or pallocco@bernlieb.com.
If you wish to serve as lead plaintiff, you must move the Court no later than April 9, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
According to the Complaint, Xponential claims to be the largest global franchisor of boutique fitness brands, with a platform offering ten brands in categories that include Pilates, indoor cycling, barre, stretching, rowing, dancing, boxing, running, functional training, and yoga.
During the Class Period, defendants allegedly failed to disclose that the Company’s franchisees – from whom Xponential derived substantially all of its revenue – were largely failing, with the majority of the Company’s store brands losing money, dozens of studios operating at a loss (forcing some to close permanently), and more than 100 franchisees listed for sale at a fraction of their initial cost. Despite this grim reality, Xponential convinced new franchisees to sign up with misleading promises of robust financial returns, misleading claims regarding past studio performance, and deceptive assurances of corporate support. Defendants concealed and failed to disclose these unfavorable studio dynamics, instead claiming Xponential was financially healthy in order to raise hundreds of millions of dollars from the investing public at fraud-inflated prices.
On June 26, 2023, analyst Fuzzy Panda published a research report titled “Xponential Fitness (XPOF) – ‘Abusive Franchisor That Is A House Of Cards’” (the “Fuzzy Panda Report”). The Fuzzy Panda Report claimed to be based on the examination of over 16,000 pages included among 64 Franchise Disclosure Documents filed with the Federal Trade Commission and various state regulators, as well as a “multitude of interviews” and other information. The Fuzzy Panda Report stated that the allegations contained therein “often had multiple sources”.
On December 7, 2023, Bloomberg Businessweek (“Businessweek”) published a damning exposé on the Company that largely corroborated the Fuzzy Panda Report’s allegations titled “Club Pilates, Pure Barre Owners Say Xponential Left Them Bankrupt.” The article stated that Businessweek had interviewed dozens of former business partners, employees, and franchisees of the Company who revealed that Xponential misled many franchisees into a “financial nightmare.” The article stated that defendant CEO Anthony Geisler “has a track record of combative management, deploying growth-at-all-costs tactics and unleashing aggressive reprisals against anyone who gets in his way.” The article disclosed that these unscrupulous tactics caused “many of the company’s franchisees [to] have either declared bankruptcy or lose their retirement savings.”
On this news, the Company’s stock price fell $1.59, or 13%, to close at $10.60 per share on December 8, 2023.
If you purchased or acquired Class A Xponential common stock, and/or would like to discuss your legal rights and options please visit Xponential Fitness, Inc. Shareholder Class Action Lawsuit or contact Investor Relations Manager Peter Allocco at (212) 951-2030 or pallocco@bernlieb.com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for sixteen consecutive years.
ATTORNEY ADVERTISING. © 2024 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
Contact Information:
Peter Allocco
Investor Relations Manager
Bernstein Liebhard LLP
https://www.bernlieb.com
(212) 951-2030
pallocco@bernlieb.com
