NEW YORK, Oct. 02, 2023 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Xponential Fitness, Inc. (NYSE: XPOF), Bowlero Corp. (NYSE: BOWL), and Advance Auto Parts, Inc. (NYSE: AAP). Our investigations concern whether these companies have violated the federal securities laws and/or engaged in other unlawful business practices. Additional information about each case can be found at the link provided.
Xponential Fitness, Inc. (NYSE: XPOF)
Xponential purports to be the largest global franchisor of boutique fitness brands and went public on July 21, 2021 at $12.00 per share. On April 6, 2022, an entity affiliated with Xponential’s Chairman of the Board sold 5.175M shares at $20.00 per share in a secondary offering. On February 8, 2023, Xponential’s founder and CEO, Anthony Geisler, and the Chairman’s entity sold 5.75 million shares at $24.50 per share in another secondary equity offering.
Before the market opened on June 27, 2023, Fuzzy Panda Research published a report Xponential Fitness (XPOF) – “Abusive Franchisor That Is A House of Cards”. The report alleges Geisler, “has a long history of misleading investors and business partners….We discovered XPOF is hiding the fact that many of their brands and franchisees are struggling.”
On this news, Xponential’s stock price has fallen intraday $7.62 per share to $17.51, a drop of 30.3% on very heavy volume.
For more information on the Xponential investigation go to: https://bespc.com/cases/XPOF
Bowlero Corp. (NYSE: BOWL)
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Bowlero announced its Q3 2023 financial results on May 17, 2023. The Company disclosed as part of its results that it had failed to maintain appropriate controls over financial reporting related to, among other things, acquisitions and fixed assets. The Company also noted, “Additionally, we did not design and maintain effective controls over system access controls to establish segregation of duties for those with roles and responsibilities for the general ledger.”
On this news, shares of Bowlero fell more than 15% in intraday trading on May 18, 2023.
For more information on the Bowlero investigation go to: https://bespc.com/cases/BOWL
Advance Auto Parts, Inc. (NYSE: AAP)
On May 31, 2023, Advance Auto Parts revealed disappointing results for the first quarter of fiscal year 2023, including a net sales decrease of more than 1.6% compared to the prior year and an operating margin rate of 2.6%, “well below expectations due to higher than planned investments to narrow competitive price gaps in the professional sales channel as well as unfavorable product mix.” Advance Auto Parts also disclosed that it was slashing its full year 2023 guidance, which it had provided just three months earlier, given that it now “expect[s] the competitive dynamics . . . faced in the first quarter to continue.” Advance Auto Parts further revealed that it was cutting its quarterly dividend by 84% “to provide enhanced financial flexibility.”
Om this news, the price of Advance Auto Parts stock declined approximately 35%.
For more information on the Advance Auto Parts investigation go to: https://bespc.com/cases/AAP
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
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