NEW YORK, NY - 
(NewMediaWire) - February 27, 2024 - Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) reminds investors that a complaint has been filed on behalf of purchasers of Xponential Fitness, Inc.’s (“Xponential Fitness” or the “Company”) publicly traded Class A common stock (NYSE: XPOF) between July 26, 2021 and December 7, 2023, inclusive (the “Class Period”). Click Here to Join Investigation.
On June 26, 2023, Fuzzy Panda Research, a short seller, published a report alleging, among other things, that Xponential is an “Abusive Franchisor That Is A House of Cards” and is "hiding the fact that many of their brands and franchisees are struggling." The report further alleges that, despite the claims of Xponential's CEO that the Company has "never closed a store," Fuzzy Panda found over 30 permanently closed stores. Additionally, the report claims that franchise documents of Xponential suggest that 8 out of every 10 Xponential brands are losing money monthly, with over half of Xponential studios never making a positive financial return.
Following the publication of the Fuzzy Panda report, Xponential's stock price fell $9.39 per share, or 37.4%, to close at $15.72 per share on June 27, 2023.
Then, on December 7, 2023, according to the complaint Bloomberg Businessweek published an exposé on the Company entitled "Club Pilates, Pure Barre Owners Say Xponential Left Them Bankrupt." The Bloomberg Businessweek article largely corroborated the Fuzzy Panda Report's allegations. The article states that dozens of former business partners, employees, and franchisees of the Company had been interviewed and revealed that Xponential misled many franchisees into a "financial nightmare."
Following publication of the Bloomberg Businessweek article, Xponential's stock price fell more than 26% over two trading days on heavy trading volume to close at $8.99 per share on December 11, 2023.
If you are a member of the proposed Class, you may move the court no later than April 9, 2024 to serve as a lead plaintiff for the purported class. If you have losses, we encourage you to contact us to learn more about the lead plaintiff process.
WHY CONTACT KAPLAN FOX - Kaplan Fox is a leading national law firm focusing on complex litigation with offices in New York, Oakland, Los Angeles, Chicago and New Jersey. With over 50 years of experience in securities litigation, Kaplan Fox offers the professional experience and track record that clients demand. Through prosecuting cases on the federal and state levels, Kaplan Fox has successfully shaped the law through winning many important decisions on behalf of our clients. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com.
If you have any questions about this Notice, your rights, or your interests, please contact:
Pamela A. Mayer
KAPLAN FOX & KILSHEIMER LLP
800 Third Avenue, 38th Floor
New York, New York 10022
(646) 315-9003
E-mail: pmayer@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
Fax: (415) 772-4707
E-mail: lking@kaplanfox.com
