SAN DIEGO, Feb. 16, 2024 /PRNewswire/ -- DiCello Levitt LLP announces that purchasers or acquirers of Xponential Fitness, Inc. ("Xponential" or the "Company") (NYSE: XPOF) common stock between July 26, 2021 and December 7, 2023, inclusive (the "Class Period") have until April 9, 2024 to seek appointment as lead plaintiff of the Xponential class action lawsuit. The lawsuit charges Xponential and certain of its senior executive officers with violations of the Securities Exchange Act of 1934.
If you purchased shares of Xponential common stock between July 26, 2021 and December 7, 2023, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, you may submit your information here: https://dicellolevitt.com/securities/xponential-fitness/.
You can also contact DiCello Levitt partner Brian O'Mara by calling (888) 287-9005 or at investors@dicellolevitt.com.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Allegations
The Xponential lawsuit alleges that throughout the Class Period, defendants 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 materially misstated by excluding underperforming stores; (3) eight out of ten Xponential brands were losing money each month; (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 steep discounts of at least 75% less than their initial cost; (7) Xponential had misled many of its franchisees into opening franchises by misrepresenting the financial profile, profitability, and expected rate of return for its studios; and (8) many Xponential franchisees were substantially in debt, suffering high attrition rates, and had no realistic path to profitability.
On June 26, 2023, a report was published which, among other things, represented that: (1) Xponential's Chief Executive Officer defendant Anthony Geisler has had a long history of misleading investors; (2) Xponential has issued a series of misleading statements about its store closures and the overall financial health of its franchisee base; (3) more than 50% of Xponential's studios never realize a positive financial return; (4) more than 100 of Xponential's franchises are for sale at 75% less than their initial cost; (5) eight out of ten Xponential brands are losing money; (6) Xponential's publicly reported SSS and AUV metrics are misleading and exclude underperforming stores; (7) over 60% of Xponential's revenue is one-time and non-recurring; and (8) at least 30 Xponential stores had been permanently closed. On this news, the price of Xponential common stock plummeted more than 37%. Subsequent reporting on these issues caused Xponential common stock to fall more than 26% over two trading days.
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