SAN DIEGO, March 24, 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). Join the Xponential class action lawsuit to potentially recover losses. Johnson Fistel LLP, a top law firm, can help you become the lead plaintiff. Get the latest news on the lawsuit. SUBMIT YOUR INFORMATION NOW!
The class action is on behalf of shareholders who purchased or otherwise acquired securities between July 26, 2021 and December 7, 2023. Investors 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.
Join the class action suit as potential lead plaintiff. No cost or obligation. Claim your rights.
There is no cost or obligation to you.
Investor Action Steps: Shareholders who sustained financial losses during the designated class period, are entitled to petition the court, until April 9, 2024, to secure the position of a lead plaintiff in this proceeding. The lead plaintiff assumes the responsibility of representing the collective interests of all class members, guiding the direction of the class-action lawsuit. This pivotal role allows the lead plaintiff the autonomy to appoint a legal firm of their preference to pursue litigation in the class-action case. An investor's eligibility to partake in any prospective settlement of the class-action lawsuit is unrelated to their role as a lead plaintiff.
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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. We also extend our services to foreign investors who have purchased on US exchanges. Stay updated with news on stock drops and learn how Johnson Fistel, LLP can help you recover your losses. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com.
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