XPOF Investors with Substantial Losses Encouraged to Contact Hagens Berman, National Trial Attorneys, Before Apr. 9th Deadline
San Francisco, California--(Newsfile Corp. - April 8, 2024) - Hagens Berman urges Xponential Fitness, Inc. (NYSE: XPOF) investors who suffered substantial losses to submit your losses now.
Class Period: July 26, 2021 - Dec. 7, 2023
Lead Plaintiff Deadline: Apr. 9, 2024
Visit: www.hbsslaw.com/investor-fraud/xpof
Contact An Attorney Now: XPOF@hbsslaw.com
844-916-0895
Xponential Fitness, Inc. (XPOF) Securities Fraud Class Action:
The litigation focuses on XPOF's repeated touting of same-store sales ("SSS") and average unit volume ("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 that: (1) it had permanently closed at least 30 stores; (2) it misstated its SSS and AUV metrics by excluding underperforming stores; (3) 80% of its brands were losing money each month; (4) over 100 of its franchises were for sale at a price well below their initial cost; and (5) it misled franchisees by misrepresenting the financial profile, profitability, and the expected rate of return for new studio openings.
Investors began to learn the truth on June 26, 2023, when Fuzzy Panda Research published a scathing report based in part on interviews with former XPOF business partners, franchisees, and on the examination of roughly 16,000 pages of Franchise Disclosure Documents ("FDDs") filed with the FTC.
Among other matters, Fuzzy Panda alleged that: (1) CEO Anthony Geisler has a long history of misleading investors; (2) XPOF falsely claimed to have never closed a store; (3) over 50% of XPOF's average studios are losing money; (4) 80% of its brands have unprofitable business models; (5) over 100 of the company's franchises were for sale at 75% below their initial cost; and (6) the SSS and AUV metrics reported to investors misleadingly exclude underperforming stores.
Then, on Dec. 7, 2023, Bloomberg published an article, based on interviews with dozens of XPOF former business partners, employees, and franchisees, which largely corroborated Fuzzy Panda's report.
These events drove the price of XPOF shares sharply lower.
After the Class Period, on Dec. 11, 2023, XPOF announced (without explaining) that the SEC contacted the company and formally requested "certain documents."
"We're investigating whether XPOF may have intentionally misled investors by misrepresenting its business model and key financial metrics," said Reed Kathrein, the Hagens Berman partner leading the firm's investigation.
If you invested in Xponential Fitness and have substantial losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman »
If you'd like more information and answers to frequently asked questions about the Xponential Fitness case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding Xponential Fitness should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email XPOF@hbsslaw.com.
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About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
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Contact:
Reed Kathrein, 844-916-0895
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/204767
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