NEW YORK, NY / ACCESSWIRE / February 28, 2024 / If you suffered a loss on your Xponential Fitness, Inc. (NYSE:XPOF) investment and want to learn about a potential recovery under the federal securities laws, follow the link below for more information:
https://zlk.com/pslra-1/xponential-fitness-lawsuit-submission-form?prid=68512&wire=1
or contact Joseph E. Levi, Esq. via email at [email protected] or call (212) 363-7500 to speak to our team of experienced shareholder advocates.
THE LAWSUIT: A class action securities lawsuit was filed against Xponential Fitness, Inc. that seeks to recover losses of shareholders who were adversely affected by alleged securities fraud between July 26, 2021 and December 7, 2023.
CASE DETAILS: The filed complaint alleges that defendants made false statements and/or concealed that: (a) Xponential had permanently closed at least 30 stores; (b) Xponential's reported same-store sales ("SSS") and average unit volume metrics had been misstated by excluding underperforming stores; (c) 8 out of 10 Xponential brands were losing money monthly; (d) over 50% of Xponential studios did not make a positive financial return; (e) over 60% of Xponential's revenue was one-time and nonrecurring; (f) more than 100 of the Company's franchises were for sale at a price that is at least 75% less than their initial cost; (g) 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; (h) many Xponential franchisees were substantially in debt, suffering high attrition rates and running non-viable studios that had no realistic path to profitability; and (i) based on the foregoing, defendants lacked a reasonable factual basis for their positive statements about Xponential's then-current business operations and future financial prospects.
WHAT'S NEXT? If you suffered a loss in Xponential Fitness stock during the relevant time frame - even if you still hold your shares - go to https://zlk.com/pslra-1/xponential-fitness-lawsuit-submission-form?prid=68512&wire=1 to learn about your rights to seek a recovery. There is no cost or obligation to participate.
WHY LEVI & KORSINSKY: Over the past 20 years, Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States. Attorney Advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 17th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171
https://zlk.com/
SOURCE: Levi & Korsinsky, LLP