Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, Feb. 21, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Xponential Fitness, Inc. (NYSE: XPOF) investors that a lawsuit was filed on behalf of investors that purchased Xponential securities between July 26, 2021 and December 7, 2023, inclusive (the “Class Period”).
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
The lawsuit claims that during the class period, the Defendants made statements that were materially false and/or misleading, or failed to disclose important information regarding Xponential's operations and financial health. Specifically, it alleges that Xponential had:
- Permanently shut down at least 30 of its stores;
- Misrepresented its same-store sales (SSS) and average unit volume (AUV) metrics by omitting underperforming stores from calculations;
- Operated eight out of its ten brands at a monthly financial loss;
- Seen over half of its studios fail to generate a positive financial return;
- Relied on one-time and non-recurring revenue for over 60% of its total revenue;
- Had more than 100 franchises on sale for a price that was at least 75% lower than their initial investment cost;
- Deceived many franchisees into opening franchises by falsely representing the financial success and profitability of its studios, as well as overstating the expected rate of return on new studios;
- Left many franchisees heavily indebted, facing high attrition rates, and operating studios that were not financially viable and lacked a realistic path to profitability.
Based on these points, the lawsuit contends that the Defendants did not have a reasonable basis to make positive statements about Xponential's business operations and its prospects for the future.
Please visit our website to review more information and submit your transaction information.
The Portnoy Law Firm represents investors in pursuing claims caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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