Shares of Xponential Fitness, Inc. plummeted by over 37% on Tuesday, June 27, 2023, after Fuzzy Panda Research published a report alleging that the company has misrepresented its financial health by excluding underperforming stores from key metrics and lying about the number of stores it has permanently closed. The report also accuses Xponential’s founder and CEO of having a long history of engaging in illegal business practices and misleading investors and business partners. Gibbs Law Group is investigating a potential Xponential Fitness Securities Class Action Lawsuit on behalf of shareholders who lost money in Xponential Fitness, Inc. (NYSE: XPOF).
To speak with an attorney regarding this class action lawsuit investigation, click here or call (888) 410-2925.
On Monday, June 26, 2023, Fuzzy Panda Research published a report accusing global fitness brand franchisor, Xponential Fitness, of “hiding the fact that many of their brands and franchisees are struggling.” According to the report, “over 50% of XPOF studios never make a positive financial return,” and despite claims from its CEO that it has “never closed a store,” it actually has permanently closed 30 stores. Xponential also allegedly makes up financial metrics by excluding underperfoming stores from certain financial calculations, as claimed in the report.
The report further alleges that Xponential Fitness founder and CEO, Anthony Geisler, has a long history of engaging in illegal business practices such as embezzling marketing funds, committing labor violations, and charging franchisees undisclosed fees. Fuzzy Panda interviewed a number of former business partners, employees, and franchisees of Geisler, with one anonymous source asserting the Geisler is a “crook” who has perpetrated “so many scams.”
Following this news, Xponential’s stock price dropped by over 37% on Tuesday, June 27, 2023, causing significant harm to investors.
What Should Xponential Fitness Investors Do?
If you invested in Xponential Fitness, visit our website or contact our securities team directly at (888) 410-2925 to discuss how you may be able to recover your losses. Our investigation concerns whether Xponential Fitness, Inc. has violated federal securities laws by providing false or misleading statements to investors.
About Gibbs Law Group
Gibbs Law Group represents investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Class Action Practice Group of the Year,” “Consumer Protection MVP,” and “Top Women Lawyers in California.”
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Contacts
CONTACT: EILEEN EPSTEIN
PHONE: 510.350.9728
EMAIL: EJE@CLASSLAWGROUP.COM
