SAN FRANCISCO, Jan. 30, 2023 (GLOBE NEWSWIRE) — Hagens Berman urges F45 Training Holdings, Inc. (NYSE: FXLV) investors who suffered significant losses to submit your losses now.
|Defined Class: Purchasers in F45 Training Holdings, Inc. July 16, 2021 IPO|
|Lead Plaintiff Deadline: Feb. 6, 2023|
|Contact An Attorney Now:||FXLV@hbsslaw.com|
F45 Training Holdings, Inc. (NYSE: FXLV) Securities Class Action:
In connection with F45’s IPO the company touted its business model as a “Predictable, Asset Light Model Driving Rapid Growth” and claimed that “[f]or the majority of franchises that we sell, we receive an upfront payment from the franchisee.” In addition, as recently as May 16, 2022, F45 assured investors that it had secured a $250 million line of credit that it could extend to franchisees to secure its target of 1,000 new studio openings in 2022.
According to the complaint, Defendants made false and misleading statements or failed to disclose in the IPO offering documents material adverse facts about F45’s business, operations, and prospects. Specifically, the complaint alleges that, unknown to investors, F45’s rapid growth strategy was unsustainable, reliant on, inter alia, franchisees opening multiple locations in a short period of time and/or dependent on franchisees who required near 100% financing of their operations to open for business.
Doubts about F45’s representations emerged on July 26, 2022, when F45 announced that: (1) it slashed its financial guidance by about 50%; (2) its 2022 net studio openings would be over 50% less that promised (i.e. between 350 and 450 vs. 1,000); (3) the $250 million credit line “will not be available;” (4) its CEO (Adam Gilchrist) left his position more than a month beforehand (on June 24, 2022); and, (5) it is firing approximately 110 employees.
This news sent the price of F45 shares crashing 61% lower on July 27, 2022.
“We’re focused on investors’ losses and proving F45 misled investors about the scalability of its model and whether there was actual $250 million in committed funding available for franchisees,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in F45 and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding F45 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 FXLV@hbsslaw.com.
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.
Reed Kathrein, 844-916-0895
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