Robbins Geller Rudman & Dowd LLP has launched an investigation into potential violations of U.S. federal securities laws involving Xponential Fitness, Inc. (NYSE: XPOF) focused on whether Xponential Fitness and certain of its top executives made false and/or misleading statements and/or failed to disclose material information to investors.
If you have information that could assist in this investigation or if you are an Xponential Fitness investor who suffered a loss and would like to learn more, you can provide your information here:
THE COMPANY: Xponential Fitness operates as a boutique fitness franchisor under the Club Pilates, Pure Barre, CycleBar, StretchLab, Row House, YogaSix, Rumble, AKT, Stride, and BFT brands.
THE REVELATION: On June 27, 2023, Fuzzy Panda Research published a report titled “Xponential Fitness (XPOF) – ‘Abusive Franchisor That Is A House Of Cards,’” alleging, among other things, that Xponential Fitness had permanently closed more than 30 stores despite representations that Xponential Fitness had “‘never closed a store.’” Fuzzy Panda Research further alleged that Xponential Fitness “likely is violating their debt covenants regarding the number of permanently closed stores they have.” Moreover, Fuzzy Panda Research concluded that “8 out of 10 [Xponential Fitness] brands are losing money monthly” and that financial disclosure documents “show that [Xponential Fitness] is selectively EXCLUDING underperforming stores from reported [Same Store Sale] and [Average Unit Volume] calculations.” Fuzzy Panda Research added that “[c]onsumers complain about ‘illegal billing practices’ including continuing to bill consumers credit cards after a studio has been permanently closed” and that Xponential Fitness CEO, Anthony Geisler, “condones a culture of sexual harassment.” Following this news, the price of Xponential Fitness stock declined by more than 37%, damaging investors.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the most recent ISS Securities Class Action Services Top 50 Report for recovering more than $1.75 billion for investors in 2022 – the third year in a row Robbins Geller tops the list. And in those three years alone, Robbins Geller recovered nearly $5.3 billion for investors, more than double the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world, and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit the following page for more information:
Past results do not guarantee future outcomes.
Services may be performed by attorneys in any of our offices.
Robbins Geller Rudman & Dowd LLP
655 W. Broadway, Suite 1900, San Diego, CA 92101
J.C. Sanchez, 800-449-4900