The Gross Law Firm notifies investors that a class action has commenced in the United States District Court for the Central District of California on behalf of shareholders of Xponential Fitness, Inc. who purchased common stock between July 26, 2021 and December 7, 2023.
The filed complaint alleges that defendants made materially false and/or misleading statements and/or failed to disclose that: (a) Xponential had permanently closed at least 30 stores; (b) Xponential’s reported same-store sales (“SSS”) and average unit volume metrics had been misstated by excluding underperforming stores; (c) 8 out of 10 Xponential brands were losing money monthly; (d) over 50% of Xponential studios did not make a positive financial return; (e) over 60% of Xponential’s revenue was one-time and nonrecurring; (f) more than 100 of the Company’s franchises were for sale at a price that is at least 75% less than their initial cost; (g) 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; (h) many Xponential franchisees were substantially in debt, suffering high attrition rates and running non-viable studios that had no realistic path to profitability; and (i) based on the foregoing, defendants lacked a reasonable factual basis for their positive statements about Xponential’s then-current business operations and future financial prospects.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until April 9, 2024 to request that the court appoint them lead plaintiff.
To receive more information, please fill out the form.
