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Lawsuit filed for Investors in shares of Xponential Fitness, Inc. (NYSE: XPOF)

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An investor, who purchased shares of Xponential Fitness, Inc. (NYSE: XPOF), filed a lawsuit in the U.S. District Court for the Central District of California over alleged violations of Federal Securities Laws by Xponential Fitness, Inc. in connection with certain allegedly false and misleading statements made between July 26, 2021 and December 7, 2023.

If you purchased a significant amount of shares of Xponential Fitness, Inc. (NYSE: XPOF) between July 26, 2021 and December 7, 2023, and / or if you purchased any NYSE: XPOF shares prior to July 2021 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: April 9, 2024. NYSE: XPOF investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.

Irvine, CA based Xponential Fitness, Inc., through its subsidiaries, operates as a boutique fitness franchisor in North America. Xponential Fitness, Inc. reported that its annual Total Revenue rose from $155.07 million in 20221 to $244.95 million in 2022, and that its Net Loss of $18.82 million turned into a Net Income of $21.21 million in 2022.

On June 27, 2023, Fuzzy Panda Research released a short report regarding Xponential’s operations. The report states,
• “CEO’s Secret Past Includes a Bangkok Boiler Room Pump & Dump; Misleading & ‘Cheating’ Partners”
• “Interviews and Disclosure Documents Reveal That Many Franchisees Are Failing & Kickbacks Are Increasing”

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.
Shares of Xponential Fitness, Inc. (NYSE: XPOF) declined from $33.58 per share on May 01, 2023, to as low as $9.61 per share on February 20, 2024.

According to the complaint the plaintiff alleges on behalf of purchasers of Xponential Fitness, Inc. (NYSE: XPOF) common shares between July 26, 2021 and December 7, 2023, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between July 26, 2021 and December 7, 2023, the defendants made false and/or misleading statements and/or failed to disclose that Xponential Fitness, Inc. had permanently closed at least 30 stores, that Xponential’s reported same-store sales (“SSS”) and average unit volume (“AUV”) metrics had been misstated by excluding underperforming stores, that 8 out of 10 Xponential Fitness, Inc. brands were losing money monthly, that over 50% of Xponential Fitness, Inc. studios did not make a positive financial return; (v) over 60% of Xponential’s revenue was one-time and non-recurring, that more than 100 of Xponential’s franchises were for sale at a price that is at least 75% less than their initial cost, that Xponential Fitness, Inc. 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 that many Xponential Fitness, Inc. franchisees were substantially in debt, suffering high attrition rates and running non-viable studios that had no realistic path to profitability

Those who purchased shares of Xponential Fitness, Inc. (NYSE: XPOF) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

About:
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

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