NEW YORK, Sept. 12, 2023 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Xponential Fitness, Inc. (NYSE: XPOF), FMC Corporation (NYSE: FMC), and Driven Brands Holdings, Inc. (NASDAQ: DRVN). Our investigations concern whether these companies have violated the federal securities laws and/or engaged in other unlawful business practices. Additional information about each case can be found at the link provided.
Xponential Fitness, Inc. (NYSE: XPOF)
Xponential purports to be the largest global franchisor of boutique fitness brands and went public on July 21, 2021 at $12.00 per share. On April 6, 2022, an entity affiliated with Xponential's Chairman of the Board sold 5.175M shares at $20.00 per share in a secondary offering. On February 8, 2023, Xponential's founder and CEO, Anthony Geisler, and the Chairman's entity sold 5.75 million shares at $24.50 per share in another secondary equity offering.
Before the market opened on June 27, 2023, Fuzzy Panda Research published a report Xponential Fitness (XPOF) - "Abusive Franchisor That Is A House of Cards". The report alleges Geisler, "has a long history of misleading investors and business partners….We discovered XPOF is hiding the fact that many of their brands and franchisees are struggling."
On this news, Xponential's stock price has fallen intraday $7.62 per share to $17.51, a drop of 30.3% on very heavy volume.
For more information on the Xponential investigation go to: https://bespc.com/cases/XPOF
FMC Corporation (NYSE: FMC)
On July 10, 2023, before the market opened, FMC Corporation, despite raising its full-year revenue guidance in May 2023, announced that it was cutting its revenue for the second quarter and the 2023 fiscal year. It announced that “the revised guidance is driven by substantially lower-than-expected volumes due to an abrupt and significant reduction in inventory by channel partners, which only became evident towards the end of May and continued through the remainder of the quarter[.]”
On this news, the price of FMC stock fell by $11.62 per share, or 11.14%, to close at $92.63 on July 10, 2023.
For more information on the FMC investigation go to: https://bespc.com/cases/FMC
Driven Brands Holdings, Inc. (NASDAQ: DRVN)
In 2015, the consumer brands and franchise focused private equity fund Roark Capital Group acquired Driven Brands which owned MAACO, Meineke Car Care Centers, and other automotive after-market companies. Roark acquired other businesses and brought them into Driven Brands and then took Driven Brands public in January 2021. In 2022, Driven Brands bought two companies in the auto glass service market, making it the second largest player in the U.S.
Before the market opened on August 2, 2023, Driven Brands announced weak second quarter 2023 results and issued weaker than expected third quarter 2023 guidance and lowered full year 2023 guidance. During the earnings call, management blamed increased competition in the car wash business over the prior two years. In addition, management said it is now "a few quarters behind" integrating the two auto glass acquisitions.
On this news, Driven Brands' stock price collapsed $10.63 per share to $15.20, a drop of 41.2% on very heavy volume.
For more information on the Driven Brands investigation go to: https://bespc.com/cases/DRVN
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.