Case Summary

Xponential Fitness

NYSE: XPOF

Case Details

  • City of Taylor General Employees Retirement System v. Xponential Fitness, Inc. et al.
  • Class Period:July 26, 2021 - December 7, 2023
  • Date Filed:February 09, 2024
  • Jurisdiction:U.S. District Court, Central District of California
  • Docket Number: 8:24-cv-00285
  • Lead Plaintiff Deadline: April 9, 2024
Days Left to
Seek Plaintiff
48

Overview

A class action lawsuit has been filed against Xponential Fitness, Inc. (“Xponential” or the “Company”) (NYSE: XPOF) and certain of the Company’s current and former senior executive officers alleging violations of the Securities Exchange Act of 1934.  The Xponential lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired publicly traded Xponential Class A common stock between July 26, 2021 and December 7, 2023, both dates inclusive (the “Class Period”), and investors have until April 9, 2024 to seek appointment as lead plaintiff of the Xponential class action lawsuit.

Xponential claims to be the largest global franchisor of boutique fitness brands, with a platform offering ten brands in categories that include Pilates, indoor cycling, barre, stretching, rowing, dancing, boxing, running, functional training, and yoga.

The lawsuit alleges that defendants, throughout the Class Period, made false and/or misleading statements and/or failed to disclose that: (1) Xponential had permanently closed at least 30 stores; (2) Xponential’s reported same-store sales (“SSS”) and average unit volume (“AUV”) metrics had been misstated by excluding underperforming stores; (3) eight out of ten Xponential brands were losing money monthly; (4) over 50% of Xponential studios did not make a positive financial return; (5) over 60% of Xponential’s revenue was one-time and non-recurring; (6) more than 100 of Xponential’s franchises were for sale at a price that is at least 75% less than their initial cost; (7) 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 (8) many Xponential franchisees were substantially in debt, suffering high attrition rates and running non-viable studios that had no realistic path to profitability.

On June 26, 2023, Fuzzy Panda published a report on Xponential, which, among other things, represented that: (1) Xponential Chief Executive Officer defendant Anthony Geisler has had a long history of misleading investors; (2) Xponential has issued a series of misleading statements about its store closures and the overall financial health of its franchisee base; (3) more than 50% of Xponential’s studios never make a positive financial return; (4) more than 100 of Xponential’s franchises are for sale at a price that is at least 75% less than their initial cost; (5) eight out of ten Xponential brands are losing money monthly; (6) Xponential’s publicly reported SSS and AUV metrics misleadingly exclude underperforming stores; (7) over 60% of Xponential’s revenue is one-time and non-recurring; and (8) at least 30 Xponential stores had been permanently closed.  On this news, the price of Xponential common stock fell more than 37%.

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.

*          *          *

If you purchased or otherwise acquired publicly traded Xponential Class A (NYSE: XPOF) common stock between July 26, 2021 and December 7, 2023, both dates inclusive, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the Xponential lawsuit is April 9, 2024.

Join This Action

Name(Required)
Address(Required)
Are you a current or former employee at the company?(Required)

Purchases

Purchases Buy Date Quantity Purchase Price per share or security Actions
       

Sales

Sale Type Sale Date Quantity Sale Price per share or security Actions
       

Upload Documents

Drop files here or
Accepted file types: xls, xlsx, doc, pdf, jpg, jpeg, Max. file size: 50 MB, Max. files: 5.