Xponential Fitness Class Action Lawsuit News – Seek Counsel Potential to Make Claim, Recover Losses
In a significant development for investors, a class action lawsuit has been initiated on behalf of shareholders of Xponential Fitness (NYSE:XPOF). This move opens up the potential for affected investors to seek legal counsel, recover their losses, and possibly claim financial compensation through Johnson Fistel, LLP, a prominent shareholder rights law firm.
The lawsuit specifically targets those who invested in Xponential Fitness securities between July 26, 2021, and December 7, 2023. These investors are now being invited to join the class action lawsuit to potentially recover their losses. With a deadline set for April 9, 2024, investors are urged to move quickly if they wish to be considered for the role of lead plaintiff in this significant legal action.
Allegations within the lawsuit claim that Xponential made false and/or misleading statements and/or failed to disclose crucial information throughout the Class Period. These include the permanent closure of at least 30 stores and the misstatement of key financial metrics by excluding underperforming stores. Remarkably, the lawsuit claims that eight out of ten Xponential brands were operating at a monthly loss, over half of its studios did not yield a positive financial return, and more than 60% of its revenue comprises one-time and non-recurring payments.
Further accusations detail that more than 100 Xponential franchises were listed for sale at significant losses, allegedly due to misrepresentations made by Xponential regarding the financial outlook and profitability of its studios, alongside the expected return rate for new studio openings. As a result, many franchisees reportedly find themselves in substantial debt, dealing with high attrition rates, and managing non-viable studios without a feasible path to profitability. Upon these revelations reaching the public domain, the lawsuit contends that investors faced significant financial damages.
This class action lawsuit provides a vital avenue for affected shareholders to join together in seeking justice and potential financial redress from the losses incurred. As the deadline to petition the court to become a lead plaintiff is April 9, 2024, investors are encouraged to act swiftly. The role of a lead plaintiff is critical in steering the class action lawsuit, offering the unique opportunity to influence the selection of legal representation and the overall direction of the case.
Johnson Fistel, LLP stands out as a top law firm with a national footprint and a strong track record in representing both individual and institutional investors in shareholder derivative and securities class action lawsuits. The firm offers its expertise to U.S.-based and international investors affected by fraudulent practices in the securities market.
As this legal battle unfolds, shareholders of Xponential Fitness have a limited window to assert their rights and potentially recover their losses. With no initial cost or obligation to participate, investors are encouraged to explore this opportunity to contribute to and benefit from the collective legal action against Xponential Fitness.
