XPOF Investors Have Opportunity to Lead Xponential Fitness, Inc. Securities Fraud Lawsuit
LOS ANGELES, Feb. 29, 2024 /PRNewswire/ -- Glancy Prongay & Murray LLP ("GPM") announces that investors with substantial losses have opportunity to lead the securities fraud class action lawsuit against Xponential Fitness, Inc. ("Xponential" or the "Company") (NYSE: XPOF).
Class Period: July 26, 2021 – December 7, 2023
Lead Plaintiff Deadline: April 9, 2024
If you wish to serve as lead plaintiff of the Xponential lawsuit, you can submit your contact information at www.glancylaw.com/cases/Xponential-Fitness-Inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at [email protected] to learn more about your rights.
The complaint filed alleges that, throughout the Class Period, Defendants failed to disclose to investors: (1) that Xponential had permanently closed at least 30 stores; (2) that Xponential's reported SSS and AUV metrics had been misstated by excluding underperforming stores; (3) that 8 out of 10 Xponential brands were losing money monthly; (4) that over 50% of Xponential studios did not make a positive financial return; (5) that over 60% of Xponential's revenue was one-time and nonrecurring; (6) that more than 100 of the Company's franchises were for sale at a price that is at least 75% less than their initial cost; (7) that Xponential had misled many of its franchisees into opening franchises by misrepresenting the financial profile and profitability of its studios, as well as the expected rate of return for new studio openings; (8) that many Xponential franchisees were substantially in debt, suffering high attrition rates and running non-viable studios that had no realistic path to profitability; and (9) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to [email protected], or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
SOURCE Glancy Prongay & Murray LLP
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