SAN
DIEGO, Feb. 16, 2024 /PRNewswire/ -- DiCello
Levitt LLP announces that purchasers or acquirers of Xponential
Fitness, Inc. ("Xponential" or the "Company") (NYSE: XPOF) common
stock between July 26, 2021 and
December 7, 2023, inclusive (the
"Class Period") have until April 9,
2024 to seek appointment as lead plaintiff of the Xponential
class action lawsuit. The lawsuit charges Xponential and certain of
its senior executive officers with violations of the Securities
Exchange Act of 1934.
If you purchased shares of Xponential common stock between
July 26, 2021 and December 7, 2023, and suffered substantial
losses, and you wish to serve as lead plaintiff in this lawsuit,
you may submit your information here:
https://dicellolevitt.com/securities/xponential-fitness/.
You can also contact DiCello Levitt partner Brian O'Mara by calling (888) 287-9005 or at
investors@dicellolevitt.com.
No Class Has Been Certified. Until a class is certified, you are
not represented by counsel unless you retain one. You may select
counsel of your choice. You may also remain an absent class member
and do nothing at this point. An investor's ability to share in any
potential future recovery is not dependent upon serving as lead
plaintiff.
Allegations
The Xponential lawsuit 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 ("SSS") and average unit volume ("AUV") metrics had been
materially misstated by excluding underperforming stores; (3) eight
out of ten Xponential brands were losing money each month; (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 steep discounts of at least 75% less than their initial
cost; (7) Xponential had misled many of its franchisees into
opening franchises by misrepresenting the financial profile,
profitability, and expected rate of return for its studios; and (8)
many Xponential franchisees were substantially in debt, suffering
high attrition rates, and had no realistic path to
profitability.
On June 26, 2023, a report was
published which, among other things, represented that:
(1) Xponential's 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 realize a positive financial return; (4)
more than 100 of Xponential's franchises are for sale at 75% less
than their initial cost; (5) eight out of ten Xponential brands are
losing money; (6) Xponential's publicly reported SSS and AUV
metrics are misleading and 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 plummeted more than 37%.
Subsequent reporting on these issues caused Xponential common stock
to fall more than 26% over two trading days.
About DiCello Levitt
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SOURCE DiCello Levitt LLP