Xponential Fitness, Inc. (NYSE: XPOF)

This lawsuit is for anyone who acquired securities in Xponential Fitness, Inc. (NYSE: XPOF) from July 26, 2021 through December 7, 2023.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by telling investors that its franchises are profitable when the Company knew that most are not.

On June 26, 2023, Fuzzy Panda Research published a report alleging, among other things, that Xponential is “hiding the fact that many of their brands and franchisees are struggling.” The report further alleges that, despite CEO claims that the Company has “never closed a store,” Fuzzy Panda found over 30 permanently closed stores. Fuzzy Panda also claims that franchise documents suggest that 8 out of every 10 Xponential brands are losing money monthly, with over half of Xponential studios never making a positive financial return. On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on December 7, 2023, Businessweek published a damning exposé on the Company that largely corroborated the Fuzzy Panda Report’s allegations titled “Club Pilates, Pure Barre Owners Say Xponential Left Them Bankrupt.”  The article stated that Businessweek had interviewed dozens of former business partners, employees, and franchisees of the Company who revealed that Xponential misled many franchisees into a “financial nightmare.”   The article stated that 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.” The article disclosed that these unscrupulous tactics caused “many of the company’s franchisees . . . [to] have either declared bankruptcy or los[e] their retirement savings” and described in detail the ways in which Xponential obscured the true financial health of its studios and induced franchisees to open new studios based on false and misleading information regarding their financial health and likely profitability. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Xponential Fitness, Inc. (NYSE: XPOF) from July 26, 2021 through December 7, 2023 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.