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Investors Alert: Class Action Lawsuit Rocks Xponential Fitness, Inc.

NEW YORK, March 15, 2024 /PRNewswire/ – The renowned legal firm Levi & Korsinsky, LLP has made a significant announcement, calling for investors of Xponential Fitness, Inc. ("Xponential Fitness" or "the Company") to take note. A class action lawsuit has been initiated, with implications for shareholders of the company, which is listed on the New York Stock Exchange under the ticker symbol XPOF.

The primary objective of this lawsuit is to recover damages for investors of Xponential Fitness who experienced serious financial loss due to purported securities fraud. The alleged fraudulent activities under scrutiny spanned from July 26, 2021, to December 7, 2023. To gain deeper insights or to become part of this legal endeavor, investors are encouraged to visit the below link for further information and to connect with the legal team:

Class Action Suit Against Xponential Fitness

For more personalized assistance, investors may reach out directly to Joseph E. Levi, Esq., by sending an email or by dialing (212) 363-7500.

Exposition of the Allegations: The lawsuit explicitly details the accusations made against the defendants, who are claimed to have communicated misleading statements and withheld crucial information. The points of contention include:

• The permanent shutdown of not less than 30 Xponential outlets.
• A distortion of the same-store sales ("SSS") and average unit volume statistics, achieved by omitting underperforming stores from the data.
• A dire financial predicament where eight out of ten Xponential brands were reportedly bleeding money each month.
• A reality that more than half the Xponential studios were not delivering a positive financial return.
• A staggering 60% of Xponential's revenue stream was identified as one-time and not recurring in nature.
• A concerning revelation that over 100 of the Company's franchised studios were being offered for sale at deeply discounted rates.
• False representations made to franchisees about the financial health and profitability of the studios, along with unrealistic promises concerning their rate of return.
• Agonizing debts borne by many franchisees, coupled with elevated attrition rates and operation of failing studios with little hope for profit.

Thus, defendants are being charged with a lack of a reasonable factual basis when making optimistic statements regarding Xponential's business operations and future financial forecasts.

What Lies Ahead for Investors? Those who have incurred losses in their investments in Xponential Fitness during the highlighted timeframe must take swift action. The deadline to petition the Court to be appointed as lead plaintiff is set for April 9, 2024. It should be noted that your eligibility to receive any potential recovery does not hinge on your status as a lead plaintiff.

A Cost-Free Opportunity: Xponential Fitness' investors who are members of the class may be entitled to a settlement without any requirement of out-of-pocket expenses or the payment of fees. The clear message to class members is that participation comes with no cost or obligatory commitments.

Why Choose Levi & Korsinsky: Over the past two decades, Levi & Korsinsky have carved out a reputation for securing substantial compensations for wronged shareholders and winning high-profile cases. They have displayed profound expertise in guiding investors through the labyrinth of complex securities litigation. Boasting a team of more than 70 dedicated professionals, the law firm has been consistently recognized by ISS Securities Class Action Services in their Top 50 Report, enumerating them as one of the preeminent securities litigation firms in the United States for seven consecutive years.

Getting in Touch: For more information or if you wish to join the legal battle, concerned parties can contact:

Levi & Korsinsky, LLP Joseph E. Levi, Esq. Ed Korsinsky, Esq. 33 Whitehall Street, 17th Floor New York, NY 10004

Emails and further contact details are provided, and prospective clients are welcomed to utilize these channels for communication. Moreover, the firm's dedication to transparency and accessibility is evident through its online presence, where additional resources and contact avenues can be found at www.zlk.com.

The news surrounding the class action lawsuit against Xponential Fitness, Inc. manifests a deep sense of urgency for investors who have felt the brunt of the alleged malpractices. Levi & Korsinsky's commendation to the table not only legal prowess but a firm standing as champions of investors' rights. Their consistent ranking as a leading securities litigation firm speaks volumes of their commitment and success rate.

For affected investors, the clock is ticking as the April 9 cut-off date approaches. The convergence of this pivotal lawsuit and the unwavering support of a reputable legal team suggests a beacon of hope for those who seek justice and reparation for their losses. Notwithstanding the outcomes, Xponential Fitness, Inc.’s investors are assured there is no financial barrier to seeking justice—at no point will they be expected to contribute out-of-pocket costs.

The comprehensive allegations put forth by Levi & Korsinsky portray a scenario where Xponential Fitness may have painted a buoyant picture of its fiscal health, possibly obscuring the reality of its financial metrics and underlying challenges. The alleged misconduct, which includes the potential sale of franchise units at significantly reduced prices and misleading franchisees about the profitability of the studios, raises critical concerns about the integrity of the Company’s revenue sources and the viability of its franchise model. Moreover, the claim that a majority of its revenue was one-time and nonrecurring raises a question over the sustainability of its business model.

Investors who are currently on the fence about taking legal action are strongly encouraged to step forward. Not merely as a measure of redress but to send a collective message that transparency and accountability are non-negotiable standards in the corporate sphere.

In summation, this legal action orchestrated by a firm with a formidable track record in securities litigation presents a critical juncture for Xponential Fitness, Inc. shareholders to rally. As they seek to confront potential injustices and work towards recouping their investments, the paths of numerous investors now converge upon the battlefield of legal recourse. Thanks to Levi & Korsinsky’s no-cost commitment, it is an accessible journey for every class member, and the strength of their collective voice promises to resonate through the halls of justice.

This class action lawsuit serves as a keystone moment—not just for the parties involved—but for the broader investment community, and what it communicates about the need for corporate transparency and investor protection. It underscores the gravity and reach of securities law, elucidating the necessity for robust legal mechanisms to balance the scales when the integrity of market transactions is called into question.