Xponential Fitness, Inc.
A securities class action has been filed in the USDC — C.D.CA. against Xponential Fitness, Inc. (“Xponential” or the “Company”), on behalf of all persons and entities that purchased or otherwise acquired Xponential common stock between July 26, 2021 and December 7, 2023, both dates inclusive (the “Class Period”).
Defendant Xponential claims to be the largest global franchisor of boutique fitness brands. The Company maintains its principal executive offices in Irvine, California and its common stock trades on the NYSE under the ticker symbol “XPOF.”
The class action alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that:
(1) Xponential had permanently closed at least 30 stores;
(2) Xponential’s reported same-store sales (“SSS”) and average unit volume (“AUV”) metrics had been misstated by excluding underperforming stores;
(3) 8 out of 10 Xponential brands were losing money monthly;
(4) over 50% of Xponential studios did not make a positive financial return;
(5) over 60% of Xponential’s revenue was one-time and non-recurring;
(6) more than 100 of Xponential’s franchises were for sale at a price that is at least 75% less than their initial cost;
(7) 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; and
(8) many Xponential franchisees were substantially in debt, suffering high attrition rates and running non-viable studios that had no realistic path to profitability, thereby harming investors.
If you purchased Xponential common stock during the Class Period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.
About Lowey Dannenberg
Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.
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