Kaskela Law LLC is investigating Xponential Fitness, Inc. (NYSE: XPOF) (“Xponential”) on behalf of the company’s long-term investors.

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.

Current Xponential shareholders who purchased or acquired shares of XPOF stock prior to December 7, 2023 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 – 0750, or by completing the form on this page, for additional information about this investigation and their legal rights and options.

CONTACT:

KASKELA LAW LLC
D. Seamus Kaskela, Esq.
([email protected])
Adrienne Bell, Esq.
([email protected])
18 Campus Blvd., Suite 100
Newtown Square, PA 19073
(888) 715 – 1740
(484) 229 – 0750