Xponential Fitness, Inc. Class Action Lawsuit - XPOF

The filed complaint alleges that Xponential Fitness, Inc. made materially false and/or misleading statements and/or failed to disclose 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.

In order to be eligible to join the XPOF class action lawsuit, you must have incurred a loss on shares of Xponential Fitness purchased during the class period listed above.

If you suffered a loss in Xponential Fitness during the relevant time frame or pursuant to the relevant offering(s), you have until April 9, 2024 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.

(a) Xponential had permanently closed at least 30 stores; (b) Xponential’s reported same-store sales 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.