SAN FRANCISCO, July 03, 2023 (GLOBE NEWSWIRE) -- Hagens Berman urges Xponential Fitness, Inc. (NYSE: XPOF) investors who suffered substantial losses to submit your losses now.
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Xponential Fitness, Inc. (XPOF) Investigation:
The investigation focuses on Xponential Fitness’ past claims that “[t]he foundation of our business is built on strong partnerships with franchisees” and “[w]e are highly focused on providing franchisees with extensive support to help maximize their performance and enhance their return on investment.”
But, on June 26, 2023, analyst Fuzzy Panda Research published a scathing report based in part on interviews with former business partners, franchisees, and employees of Xponential Fitness’ CEO (Anthony Geisler), concluding “the XPOF house of cards is beginning to fall.”
With respect to Geisler, Fuzzy Panda's research reveals: (1) Geisler was “previously CEO of a reverse merger, pink sheets, pump & dump called Interactive Solutions (INSC) that used Bangkok boiler rooms” and (2) “former franchisees, and colleagues of Geisler’s described him ‘as a crook’ and detailed his many ‘scams’ and ‘illegal business practices[.]’”
Fuzzy Panda also found that over 50% of the company’s average studios are losing money, 80% of its brands have unprofitable business models, franchisees are giving their studios back to XPOF for $1, more of the worst loss-making transition studios are on XPOF’s balance sheet and they have become harder for XPOF to re-sell, and XPOF has closed lots of studios despite management’s claim to never closed a single studio.
In response, the price of Xponential shares crashed as much as 42% lower on June 27, 2023.
“We’re focused on investors’ losses and whether Xponential lied about its business model and financial metrics,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Xponential Fitness and have substantial losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Xponential Fitness should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email XPOF@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
