Kaskela Law LLC announces that it is investigating Xponential Fitness, Inc. (NYSE: XPOF) (“Xponential”) on behalf of the company’s long-term shareholders.
https://kaskelalaw.com/case/xponential-fitness-inc/
Recently a securities fraud complaint was filed against Xponential on behalf of certain investors who purchased shares of the company’s stock between July 26, 2021 and December 7, 2023.
As detailed in the complaint, on June 26, 2023, analyst firm Fuzzy Panda published a report on Xponential, which, among other things, reported that: (i) Xponential CEO, defendant Anthony Geisler, has had a long history of misleading investors; (ii) Xponential has issued a series of misleading statements about its store closures and the overall financial health of its franchisee base; and (iii) more than 50% of Xponential’s studios never make a positive financial return. Following this report, shares of Xponential’s stock fell $9.39 per share, or over 37% in value, to close on June 27, 2023 at $15.72 per share, on unusually heavy trading volume.
Then, on December 7, 2023, Businessweek published an article entitled “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, shares of Xponential’s stock fell an additional $2.99 per share, or 22% in value, to close on December 8, 2023 at $10.60 per share, again on unusually heavy trading volume.
The investigation seeks to determine whether the members of Xponential’s board of directors violated the securities laws and/or breached their fiduciary duties in connection with the above alleged misconduct and disclosures.
Xponential shareholders who purchased or acquired their currently held XPOF shares prior to December 7, 2023 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 – 0750 for additional information about this investigation and their legal rights and options. Alternatively, investors may submit their information to the firm by clicking on the following link (or by copying and pasting the link into your browser):
https://kaskelalaw.com/case/xponential-fitness-inc/
Kaskela Law LLC exclusively represents investors in securities fraud, corporate governance, and merger & acquisition litigation on a contingent basis. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20240919993799/en/
