BOSTON--(BUSINESS WIRE)--Berman Tabacco, a national law firm representing investors, is investigating potential securities law violations by Xponential Fitness, Inc. ("Xponential" or the "Company") (NYSE: XPOF), global franchisor of boutique fitness brands based in Irvine, California.
About the Investigation
On December 7, 2023, Bloomberg Businessweek published an article titled “Club Pilates, Pure Barre Owners Say Xponential Left Them Bankrupt.” The article reported, among other things, that “[m]ore than 30 former and existing franchisees … spoke to Businessweek on the condition of anonymity because they feared legal retribution. They say Xponential deliberately misled them and their peers about the strength of the individual franchises prior to signing the agreement.” The article also noted that “Xponential, in a statement to Businessweek, rejects these assertions, explaining that all prospective owners, by law, are given franchise disclosure documents with financials to review that regulators have approved.”
On December 11, 2023, before the market open, the Company disclosed in a Form 8-K filing that “[o]n December 5, 2023, [Xponential] was contacted by the Securities and Exchange Commission (the ‘SEC’), requesting that the Company provide it with certain documents.” Shares of Xponential fell $1.61 per share (or 15%) to close at $8.99 per share, on December 11, 2023.
Contact
If you have information concerning this investigation, please contact us here: Contact | Berman Tabacco.
About Berman Tabacco
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