| COMPANY |
Xponential Fitness, Inc. |
| COURT |
United States District Court for the Central District of California |
| CASE NUMBER |
24-cv-00285 |
| JUDGE |
The Hon. John William Holcomb |
| CLASS PERIOD |
July 26, 2021 through December 7, 2023 |
| SECURITY TYPE |
Class A Common Stock |
Case Background:
This is a class action lawsuit on behalf of those who purchased or acquired Xponential Fitness, Inc. (“Xponential”) (NYSE: XPOF) Class A common stock between July 23, 2021 and May 10, 2024, both dates inclusive (the “Class Period”).
The Complaint alleges that, throughout the Class Period, Defendants 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 and average unit volume metrics had been misstated by excluding underperforming stores; (3) 8 out of 10 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.
Current Status of Case:
On May 20, 2024, The Court granted Motion for Appointment of Lead Plaintiff and Appointment of Counsel. Lead Plaintiff filed a Consolidated Complaint on July 26, 2024. The action is ongoing.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jonathan Naji, Esq. (484) 270-1453 or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.