The Law Offices of Frank R. Cruz announces an investigation of Xponential Fitness, Inc. (“Xponential” or the “Company”) (NYSE: XPOF) concerning whether the board of directors breached its fiduciary duties to Xponential shareholders.
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On May 10, 2024, the Company revealed that it was under investigation by the U.S. Attorney’s Office for the Central District of California, in addition to the ongoing investigation by the U.S. Securities and Exchange Commission. These investigations follow reports in 2023 that Xponential is “hiding the fact that many of [its] brands and franchisees are struggling.” Citing franchise documents, these reports stated that 8 out of every 10 Xponential brands are losing money monthly, with over half of Xponential studios never making a positive financial return.
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If you still hold Xponential shares purchased before 2022, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Century City, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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