ATTENTION NYSE: XPOF INVESTORS: Contact Berger Montague About an Xponential Fitness, Inc. Class Action Lawsuit
PHILADELPHIA, Feb. 15, 2024 /PRNewswire/ -- Berger Montague advises investors that a securities fraud class action lawsuit has been filed against Xponential Fitness, Inc. ("Xponential") (NYSE: XPOF) on behalf of purchasers of Xponential's securities between July 26, 2021 and December 7, 2023, inclusive (the "Class Period").
Investor Deadline: Investors who purchased or acquired Xponential securities during the Class Period may, no later than April 9, 2024, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation, please contact Berger Montague: James Maro at [email protected] or (267) 637-3176, or Andrew Abramowitz at [email protected] or (215) 875-3015 or CLICK HERE.
Xponential is an Irvine, California-based global franchisor of boutique fitness brands.
According to the complaint, throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that, among other things: (i) Xponential had permanently closed at least 30 stores; (ii) Xponential's reported same-store sales and average unit volume metrics had been misstated by excluding underperforming stores; (iii) 8 out of 10 Xponential brands were losing money monthly; and (iv) more than 100 of Xponential's franchises were for sale at a price that was at least 75% less than the initial cost.
On June 26, 2023, Fuzzy Panda published a report which, among other things, represented that: (i) Xponential CEO Anthony Geisler, has had a long history of misleading investors; (ii) Xponential has issued a series of misleading statements about its store closures and the overall financial health of its franchisee base; (iii) more than 50% of Xponential's studios never make a positive financial return; (iv) more than 100 of Xponential's franchises were for sale at a price that was at least 75% less than the initial cost; and (v) at least 30 Xponential stores had been permanently closed.
On this news, the price of Xponential common stock fell more than 37%, from a closing price of $25.11 per share on June 26, 2023 to a close of $15.72 on June 27, a decline of $9.39 per share.
Then, on December 7, 2023, Businessweek published an article titled "Club Pilates, Pure Barre Owners Say Xponential Left Them Bankrupt," which stated that Businessweek had interviewed dozens of former business partners, employees, and franchisees of Xponential who revealed that Xponential misled many franchisees into a "financial nightmare."
On this news, the price of Xponential common stock fell more than 26% over two trading days.
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Berger Montague, with offices in Philadelphia, Minneapolis, Delaware, Washington, D.C., San Diego, San Francisco and Chicago, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Contacts:
James Maro, Senior Counsel
Berger Montague
(267) 637-3176
[email protected]
Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
[email protected]
SOURCE Berger Montague
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