XPOF investors experiencing significant losses are encouraged to contact national trial attorney Hagens Berman.
SAN FRANCISCO, Feb. 19, 2024 (Globe Newswire) — Hagens Berman highly recommends Xponential Fitness, Inc. (NYSE:XPOF) Investors who have suffered significant losses should report their losses now.
Class period: July 26, 2021 – December 7, 2023
Lead plaintiff deadline: April 9, 2024
visit: www.hbsslaw.com/investor-fraud/xpof
Contact an attorney today: [email protected]
844-916-0895
Xponential Fitness, Inc. (XPOF) Securities Fraud Class Action Lawsuit:
The lawsuit focuses on XPOF’s repeated promotion of same-store sales (“SSS”) and average unit sales (“AUV”) metrics as measures of the health of its franchise system.
The complaint alleges, in part, that XPOF made misleading statements and failed to disclose: (1) XPOF has permanently closed at least 30 stores. (2) misrepresented SSS and AUV metrics by excluding underperforming stores; (3) 80% of the company’s brands were losing money every month. (4) More than 100 franchises were sold at prices well below their initial cost. (5) misled franchisees by misrepresenting their financial condition, profitability, or expected rate of return for opening new studios;
Investors began learning the truth on June 26, 2023. Fuzzy panda research has released a scathing report based in part on interviews with former XPOF business partners and franchisees and a review of approximately 16,000 pages of Franchise Disclosure Documents (“FDDs”) filed with the FTC.
Above all, fuzzy panda (1) CEO Anthony Geisler has a long history of misleading investors. (2) XPOF falsely claimed that it had never closed any stores; (3) More than 50% of the average studio in XPOF is losing money. (4) His 80% of the company’s brands have unprofitable business models. (5) His over 100 franchises of the company were sold at prices below his 75% of initial costs. (6) his SSS and AUV metrics reported to investors misleadingly exclude underperforming stores;
Then, on December 7, 2023, bloomberg They published an article based on interviews with dozens of former XPOF business partners, employees, and franchisees, and largely corroborated their claims. fuzzy pandaThis is a report by
These events caused the price of XPOF stock to decline significantly.
On December 11, 2023, after the class period, XPOF announced (without explanation) that the SEC had contacted the company and formally requested “certain documents.”
“We are investigating whether XPOF may have intentionally misled investors by misrepresenting its business model and key financial metrics,” said Reid Catherine, a partner at Hagens Berman who led the investigation into the company. said.
If you have invested in Xponential Fitness and have lost significant amounts of money, or if you have knowledge that could help us investigate the company, click here to discuss your legal rights with Hagens Berman.
For more information and answers to frequently asked questions about the Xponential Fitness incident and our investigation, learn more »
Whistleblower: Anyone with nonpublic information about Xponential Fitness should consider the options of cooperating with the investigation or taking advantage of the SEC Whistleblower Program. Under the new program, whistleblowers who provide unique information can receive a reward of up to 30 percent of the amount of a successful recovery by the SEC. For more information, please contact Reed Kathrein. 844-916-0895 Or email us at [email protected].
About Hagen’s Berman
Hagens Berman is a global plaintiffs’ rights multi-litigation law firm focused on corporate accountability through class action law. The firm is home to a robust securities litigation practice, representing investors as well as whistleblowers, workers, consumers, and others in cases that have substantial consequences for those harmed by corporate negligence or fraud. I act as an agent for people, etc. To learn more about the firm and its success, visit hbsslaw.com. Follow the company at @ClassActionLaw for updates and news.
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contact:
Reid Catherine, 844-916-0895
