XPOF - XPONENTIAL ALERT: Bragar Eagel & Squire P.C. is Investigating Xponential Fitness Inc. on Behalf of Long-Term Stockholders and Encourages Investors to Contact the Firm | Benzinga
NEW YORK, May 14, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Xponential Fitness, Inc. (NYSE:XPOF) on behalf of long-term stockholders following a class action complaint that was filed against Xponential on February 9, 2024 with a Class Period from July 26, 2021 to December 7, 2023. Our investigation concerns whether the board of directors of Xponential have breached their fiduciary duties to the company.
The Xponential class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Xponential had permanently closed at least 30 stores; (ii) Xponential's reported same-store sales ("SSS") and average unit volume ("AUV") metrics had been misstated by excluding underperforming stores; (iii) 8 out of 10 Xponential brands were losing money monthly; (iv) over 50% of Xponential studios did not make a positive financial return; (v) over 60% of Xponential's revenue was one-time and non-recurring; (vi) more than 100 of Xponential's franchises were for sale at a price that is at least 75% less than their initial cost; (vii) Xponential had misled many of its ...