LOS ANGELES, March 27, 2024 /PRNewswire/ — The Law Offices of Frank R. Cruz announces that investors with substantial losses have opportunity to lead the securities fraud class action lawsuit against Xponential Fitness, Inc. (“Xponential” or the “Company”) (NYSE: XPOF).
Class Period: July 26, 2021 – December 7, 2023
Lead Plaintiff Deadline: April 9, 2024
If you are a shareholder who suffered a loss, click here to participate.
The complaint filed alleges that, throughout the Class Period, Defendants failed to disclose to investors: (1) that Xponential had permanently closed at least 30 stores; (2) that Xponential’s reported SSS and AUV metrics had been misstated by excluding underperforming stores; (3) that 8 out of 10 Xponential brands were losing money monthly; (4) that over 50% of Xponential studios did not make a positive financial return; (5) that over 60% of Xponential’s revenue was one-time and nonrecurring; (6) that more than 100 of the Company’s franchises were for sale at a price that is at least 75% less than their initial cost; (7) that 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) that 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) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, 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 [email protected], 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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SOURCE The Law Offices of Frank R. Cruz, Los Angeles
