SAN DIEGO, Feb. 12, 2024 (GLOBE NEWSWIRE) — Robbins LLP informs investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Xponential Fitness, Inc. (NYSE: XPOF) common stock between July 26, 2021 and December 7, 2023. Xponential claims to be the largest global franchisor of boutique fitness brands.
For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.
The Allegations: According to the complaint, defendants failed to disclose that the Company’s franchisees – from whom Xponential derived substantially all of its revenue – were largely failing, with the majority of the Company’s store brands losing money, dozens of studios operating at a loss (forcing some to close permanently), and more than 100 franchisees listed for sale at a fraction of their initial cost. Despite this grim reality, Xponential gained new franchisees through false and misleading promises of robust financial returns, misleading claims regarding past studio performance, and deceptive assurances of corporate support.
Plaintiff alleges that on December 7, 2023, Businessweek published a damning exposé on the Company that largely corroborated claims made in a previously issued report by Fuzzy Panda titled “Club Pilates, Pure Barre Owners Say Xponential Left Them Bankrupt.” The article stated that Businessweek had interviewed dozens of former business partners, employees, and franchisees of the Company who revealed that Xponential misled many franchisees into a “financial nightmare.” The article stated that defendant Geisler “has a track record of combative management, deploying growth-at-all-costs tactics and unleashing aggressive reprisals against anyone who gets in his way.” The article disclosed that these unscrupulous tactics caused “many of the company’s franchisees . . . [to] have either declared bankruptcy or los[e] their retirement savings” and described in detail the ways in which Xponential obscured the true financial health of its studios and induced franchisees to open new studios based on false and misleading information regarding their financial health and likely profitability. Following the publication of the Businessweek article, the price of Xponential common stock fell more than 26% over two trading days on heavy trading volume to close at less than $9 per share on December 11, 2023.
What Now: You may be eligible to participate in the class action against Xponential Fitness, Inc. Shareholders who want to serve as lead plaintiff for the class must file their papers with the court by April 9, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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| Contact: Aaron Dumas, Jr. Robbins LLP 5060 Shoreham Pl., Ste. 300 San Diego, CA 92122 adumas@robbinsllp.com (800) 350-6003 www.robbinsllp.com | https://www.facebook.com/RobbinsLLP/ https://www.linkedin.com/company/robbins-llp/ |
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