GRABAR LAW OFFICE INVESTIGATES CLAIMS ON BEHALF OF SHAREHOLDERS OF XPONENTIAL FITNESS, INC. (NYSE: XPOF)
Xponential Fitness, Inc. (NYSE: XPOF) is the largest global franchisor of boutique fitness brands.
According to a recently filed securities fraud class action lawsuit, Xponential Fitness, Inc., through certain of its officers and directors, 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 and average unit volume 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; (8) 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) 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.
Current Xponential Fitness shareholders who have held Xponential Fitness shares since prior to July 26, 2021 can seek corporate reforms, the return of funds back to the company, and a court approved incentive award at no cost to them whatsoever.
If you would like to learn more about this matter, you are encouraged to contact us at jgrabar@grabarlaw.com, or call 267-507-6085.