XPOF NEWS: Johnson Fistel Notifies Xponential Fitness Investors to Seek Counsel Before Lead Plaintiff Class Action Deadline
SAN DIEGO, Feb. 26, 2024 (GLOBE NEWSWIRE) — Shareholder rights law firm Johnson Fistel, LLP announces that a class action lawsuit has commenced on behalf of investors of Xponential Fitness (“Xponential” or the “Company”) (NYSE:XPOF). The class action is on behalf of shareholders who purchased or otherwise acquired securities between July 26, 2021 and December 7, 2023. Investors are hereby notified that they have until April 9, 2024, to move the Court to serve as lead plaintiff in this action.
The Xponential class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Xponential had permanently closed at least 30 stores; (ii) Xponential’s reported same-store sales (“SSS”) and average unit volume (“AUV”) metrics had been misstated by excluding underperforming stores; (iii) 8 out of 10 Xponential brands were losing money monthly; (iv) over 50% of Xponential studios did not make a positive financial return; (v) over 60% of Xponential’s revenue was one-time and non-recurring; (vi) more than 100 of Xponential’s franchises were for sale at a price that is at least 75% less than their initial cost; (vii) 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; and (viii) many Xponential franchisees were substantially in debt, suffering high attrition rates and running non-viable studios that had no realistic path to profitability. When the true details entered the market, the lawsuit claims that investors suffered damages.
If you would like to review the complaint and join the class action, please follow the link below for more information:
Click Here to Submit Your Information
There is no cost or obligation to you.
What can Investors Do: Shareholders who incurred losses during the class period, have until April 9, 2024, to move the court to become a lead plaintiff in this action. A lead plaintiff will act on behalf of all other class members in directing the class-action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the class-action lawsuit. An investor’s ability to share any potential future recovery of the class action lawsuit is not dependent upon serving as lead plaintiff.
About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, Georgia, and Colorado. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com.
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Contact:
Johnson Fistel, LLP
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James Baker, Investor Relations or Frank J. Johnson, Esq., (619) 814-4471
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