Case Background:
This is a federal securities fraud class action lawsuit on behalf of those who purchased or otherwise acquired Xponential Fitness, Inc. (“Xponential”) (NYSE: XPOF) Class A common stock between July 23, 2021 and May 10, 2024, inclusive (the “Class Period”).
The complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Xponential had permanently closed at least 30 stores; (2) Xponential’s reported same-store sales and average unit volume metrics had been misstated by excluding underperforming stores; (3) 8 out of 10 Xponential brands were losing money monthly; (4) over 50% of Xponential studios did not make a positive financial return; (5) over 60% of Xponential’s revenue was one-time and non-recurring; (6) more than 100 of Xponential’s franchises were for sale at a price that is at least 75% less than their initial cost; (7) Xponential had misled many of its franchisees into opening franchises by misrepresenting the financial profile and profitability of its studios, as well as the expected rate of return for new studio openings; (8) many Xponential franchisees were substantially in debt, suffering high attrition rates and running non-viable studios that had no realistic path to profitability; and (9) as a result of the foregoing, Defendants’ statements about Xponential’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Current Status of Case:
On July 1, 2025, Defendants filed a Motion to Dismiss the Amended Complaint. The Motion has been fully briefed and is pending decision before the Court. This action is ongoing.
If you wish to discuss this action or have any questions, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.