Law Offices of Howard G. Smith announces that it has commenced an investigation of potential claims against the board of directors of Xponential Fitness, Inc. (“Xponential” or the “Company”) (NYSE: XPOF) concerning whether the board of directors breached its fiduciary duties to Xponential shareholders.
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.
If you still hold Xponential shares purchased before 2022, have information or would like to learn more about this matter, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847 or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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