new york, March 3, 2024 /PRNewswire/ — Pomerantz LLP announces that a class action lawsuit has been filed against Xponential Fitness, Inc. (“Xponential” or the “Company”) (NYSE: XPOF).Such investors are encouraged to contact daniel payton in [email protected] or 646-581-9980 (or 888.4-POMLAW), toll-free, ext. If you inquire by email, please include your address, phone number, and number of shares purchased.
This class action lawsuit concerns whether Xponential and certain of its officers and/or directors were involved in securities. scam or any other illegal commercial activity.
There is a period of up to April 10, 2024, if you are a shareholder who purchased or otherwise acquired Xponential securities during the Class Period, ask the court to appoint you as lead plaintiff in the class action. A copy of your complaint can be obtained by:t www.pomerantzlaw.com.
[Click here for information about joining the class action]
upon June 26, 2023, short-biased analyst firm Fuzzy Panda has published a research report titled “Xponential Fitness (XPOF) – ‘Abusive Franchisor That Is A House Of Cards'” (the “Fuzzy Panda Report”). Among other revelations, the Fuzzy Panda report: Suspect Chief Executive Officer (“CEO”) of Xponential Anthony Geisler The company has been exposed on camera for using “boiler room” tactics to mislead investors in connection with its previous business, and for publishing false claims that Xponential “has never closed any stores.” It has a long history of misleading investors, including Fuzzy Panda Report examined 64 Franchise Disclosure Documents (“FDDs”) and found that 8 out of 10 Xponential brands are losing money every month, and more than 50% of their studios are generating positive financial returns. It has been proven that this is not the case. The Fuzzy Panda report also highlights that over 100 of Xponential’s franchises are sold for 75% less than initial cost, and that the company reports same-store sales (“SSS”) and average sales volume (“AUV”). ”) was also found to be high. Selectively and misleadingly exclude underperforming stores to investors.
Xponential stock price falls after publication of Fuzzy Panda report $9.39 The price per share reached more than 39%, $15.72 per share June 27th2023.
Although Xponential tried to deny the allegations in the Fuzzy Panda report, December 7, 2023, Bloomberg Businessweek (“BusinessWeek”) published an exposé about the company that largely confirms the claims of the Fuzzy Panda report, titled “Club Pilates and Pure Bar owners say they have bankrupted Xponential.” has been published. According to the article, Business Week interviewed dozens of the company’s former business partners, employees, and franchisees and found that Xponential was misleading many franchisees into a “financial nightmare.” said. The article said that CEO Geisler “has a track record of aggressive management, deploying growth-at-all-cost strategies and aggressively retaliating against those who stand in his way.” ” he said. The article states that these unscrupulous tactics have led to “many of the company’s franchisees… [to] declared bankrupt or suffered a loss[e] Their retirement savings. ”
After the Businessweek article was published, Xponential’s stock price fell more than 26% in two business days due to heavy trading volume, and the closing price was $9 per share December 11, 2023.
Pomerantz LLP, whose offices are: new york, Chicago, Los Angeles, London, Parisand tel avivis recognized as one of the premier firms in the areas of corporate litigation, securities litigation, and antitrust class action litigation.Founded by the deceased Abraham L. PomerantzPomerantz, known as the Director of Class Action Lawyers, pioneered the field of securities class action litigation. Today, more than 85 years later, Pomerantz continues the tradition he established and continues to fight for the rights of securities victims. scam, breach of fiduciary duty, corporate misconduct. Our firm has recovered billions of dollars in damages on behalf of class participants.look www.pomlaw.com.
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contact:
daniel payton
Pomerantz LLP
[email protected]
646-581-9980 extension 7980
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SOURCE Pomerantz LLP