NEW YORK, February 19, 2024 (GLOBE NEWSWIRE) — The law firm of Kirby McInerney LLP reminds investors that a class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of those who acquired Xponential Fitness. It reminded me. For the period July 26, 2021 through December 7, 2023 (the “Class Period”), the securities of Xponential Inc. (“Xponential” or the “Company”) (NYSE: XPOF). Investors have until April 9, 2024 to apply to the court to be appointed as lead plaintiff in the lawsuit.
[Click here to learn more about the class action]
On June 26, 2023, Fuzzy Panda published a report on Xponential. Among other things, the report found: (i) 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 over 50% of Xponential’s studio has 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) Xponential’s published same-store sales (“SSS”) and average unit sales (“AUV”) metrics exclude underperforming stores, which are 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 stock fell $9.39 (approximately 37.4%) from his $25.11 per share to a closing price of $15.72 on June 27, 2023.
And on December 7, 2023, business week Published an article titled “Club Pilates, Pure Barre owner says Xponential is bankrupt” and states: business week interviewed multiple former business partners, employees, and franchisees of Xponential, alleging that Xponential misled many franchisees into a “financial nightmare.” The article went on to say that CEO Geisler “has a track record of aggressive management, deploying growth-at-all-cost strategies and aggressively retributing those who stand in his way.” Following this news, the price of Xponential stock declined by $3.20 (approximately 26.3%) in two business days, from $12.19 per share on December 7, 2023 to $8.99 per share on December 11, 2023. finished.
The lawsuit alleges that Xponential made false and/or misleading statements and/or failed to disclose: (i) Xponential has permanently closed at least 30 stores; (ii) his SSS and AUV metrics reported by Xponential were misstated by excluding underperforming stores; (iii) 8 of his 10 Xponential brands were losing money every month. (iv) more than 50% of his Xponential studios are not generating positive financial returns; (v) over 60% of his Xponential revenue was one-time and non-recurring; (vi) more than 100 of Xponential’s franchises had selling prices that were at least 75% lower than initial costs; (vii) Xponential deceived numerous franchisees into opening franchises by misrepresenting the studio’s financial condition and profitability and the expected rate of return on opening new studios; (viii) Many of the Xponential franchisees were operating unviable studios that were heavily in debt, suffered from high turnover rates, and had no realistic path to profitability.
If you purchased or acquired Xponential securities, have information about this investigation, or would like to learn more, please contact Kirby McInerney LLP by email at [email protected] or by filling out this contact form Please contact Thomas W. Elrod at You may discuss your rights or interests in these matters at no cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm focused on securities, antitrust, whistleblowing, and consumer litigation. The firm has represented shareholders in securities litigation resulting in recoveries totaling billions of dollars. Additional information about the company can be found on his website at Kirby McInerney LLP.
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contact address
Kirby McInerney Law Office
Mr. Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com