PHILADELPHIA, June 12, 2024 (GLOBE NEWSWIRE) -- Kaskela Law LLC announces that it is investigating Xponential Fitness, Inc. (NYSE: XPOF) (“Xponential”) on behalf of the company’s long-term investors.
Recently a securities fraud complaint was filed against Xponential on behalf of certain investors who purchased shares of the company’s stock between July 26, 2021 and December 7, 2023.
As detailed in the complaint, on June 26, 2023, analyst firm Fuzzy Panda published a report on Xponential, which, among other things, represented that: (i) Xponential CEO, defendant Anthony Geisler, has had a long history of misleading investors; (ii) Xponential has issued a series of misleading statements about its store closures and the overall financial health of its franchisee base; (iii) more than 50% of Xponential’s studios never make a positive financial return; (iv) more than 100 of Xponential’s franchises are for sale at a price that is at least 75% less than their initial cost; (v) 8 out of 10 Xponential brands are losing money monthly; (vi) Xponential’s publicly reported SSS and AUV metrics misleadingly exclude underperforming stores; (vii) over 60% of Xponential’s revenue is one-time and non-recurring; and (viii) at least 30 Xponential stores had been permanently closed. On this news, the price of Xponential common stock fell more than 37% in value.
Then, on December 7, 2023, Businessweek published an article titled “Club Pilates, Pure Barre Owners Say Xponential Left Them Bankrupt” which stated that Businessweek had interviewed dozens of former business partners, employees, and franchisees of Xponential who revealed that Xponential misled many franchisees into a “financial nightmare.” The article further stated defendant Geisler “has a track record of combative management, deploying growth-at-all-costs tactics and unleashing aggressive reprisals against anyone who gets in his way.” On this news, the price of Xponential common stock fell more than 26% over two trading days.
The investigation seeks to determine whether the members of Xponential’s board of directors violated the securities laws and/or breached their fiduciary duties in connection with the above alleged misconduct and disclosures.
Current Xponential shareholders who purchased or acquired shares of XPOF stock prior to December 7, 2023 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 – 0750 or (888) 715 – 1740 for additional information about this investigation and their legal rights and options, or by clicking on the following link (or if necessary, copying and pasting the link into your browser):
https://kaskelalaw.com/case/xponential-fitness-inc/
Kaskela Law LLC exclusively represents investors in securities fraud, corporate governance, and merger & acquisition litigation on a contingent basis. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.
CONTACT:
KASKELA LAW LLC
D. Seamus Kaskela, Esq.
(skaskela@kaskelalaw.com)
Adrienne Bell, Esq.
(abell@kaskelalaw.com)
18 Campus Blvd., Suite 100
Newtown Square, PA 19073
(888) 715 – 1740
(484) 229 – 0750
www.kaskelalaw.com
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