SAN FRANCISCO, CA / ACCESSWIRE / March 12, 2023 / National plaintiffs law firm Lieff Cabraser Heimann & Bernstein, LLP encourages investors in Xponential Fitness, Inc. ("Xponential" or the "Company") (NYSE:XPOF) who suffered losses from purchasing or otherwise acquiring XPOF Class A common stock between July 26, 2021 and December 7, 2023, inclusive (the "Class Period"), to contact us immediately regarding a pending securities fraud class action against Xponential. The deadline to apply to be lead plaintiff is April 9, 2024.
Class Period: July 26, 2021 - December 7, 2023
Lead Plaintiff Motion Deadline: April 9, 2024
Case information:lieffcabraser.com/securities/xpof
Contact us: Email or text investorinfo@lchb.com or call 1-800-541-7358
Xponential, headquartered in Irvine, California, is a franchisor of fitness brands. As of December 31, 2022, the Company had over 1,700 franchisees in North America.
The action alleges that, throughout the Class Period, Defendants made false and/or misleading statements about the performance and prospects of Xponential's franchisees, which were largely failing. The Company falsely represented it had never permanently closed a store when in fact over 30 stores had been permanently closed. The Company also did not disclose that most of its store brands were losing money, and that over 100 franchisees were listed for sale at fractions of their initial prices. Xponential concealed these fraught dynamics to investors, thereby fraudulently misrepresenting the financial health of the Company.
On June 26, 2023, Fuzzy Panda, an investment research firm, published a research report titled, "Xponential Fitness (XPOF) - ‘Abusive Franchisor That Is A House Of Cards.'" The research report detailed claims that Xponential's founder and Chief Executive Officer, defendant Anthony Geisler, had a history of misleading investors using high-pressure, or "boiler room," sales tactics. On this news, the price of Xponential common stock fell $9.39 per share, or 37.39%, from its closing price of $25.11 per share on June 26, 2023, to close at $15.72 per share on June 27, 2023.
Then, on December 7, 2023, Bloomberg Businessweek published an article titled, "Club Pilates, Pure Barre Owners Say Xponential Left Them Bankrupt," that corroborated the claims in the Fuzzy Panda report. The Bloomberg Businessweek article included multiple interviews with Xponential's franchisees who revealed that the Company misled them into financially disastrous investments. On this news, the price of Xponential common stock declined $1.59 per share, or 13.04%, from its closing price of $12.19 per share on December 7, 2023, to close at $10.60 per share on December 8, 2023.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with over 125 attorneys in offices in San Francisco, New York, Nashville, and Munich, Germany, is an internationally-recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. Repeatedly recognized as a "Plaintiffs' Powerhouse" by Law360, Lieff Cabraser has litigated some of the most important civil cases in the United States, and has assisted clients in recovering over $129 billion in verdicts and settlements. For over 50 years, Lieff Cabraser has remained committed to ensuring access to justice for all.
Contact
Sharon Lee
Lieff Cabraser Heimann & Bernstein, LLP
415 956-1000
slee@lchb.com
SOURCE: Lieff Cabraser Heimann & Bernstein, LLP
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