SAN FRANCISCO, Nov. 20, 2024 /PRNewswire/ -- Schubert Jonckheer & Kolbe LLP advises Xponential Fitness, Inc. investors that the firm is investigating potential legal claims relating to significant insider trading and possible false statements about franchisee performance and revenue growth. Current shareholders are encouraged to contact the firm.

Xponential is one of the largest global franchisors of boutique fitness brands. At relevant times, the company touted its business prospects based on the strength of its franchisees' revenue growth. A short-seller analyst report later exposed these statements as inaccurate because Xponential concealed that over 50% of its studios did not earn a positive financial return, nearly all of its brands were losing money monthly, it had permanently closed down at least thirty locations, many of its franchises were listed for sale at a fraction of their purchase prices, and by misstating key performance metrics. During this period, company insiders sold more than $275 million in Xponential stock. Additionally, the U.S. Securities and Exchange Commission, U.S. Attorney's Office, and U.S. Federal Trade Commission have all opened investigations into Xponential. In May 2024, the company suspended its CEO Anthony Geisler indefinitely, who then resigned three days later. These disclosures resulted in substantial stock price declines.

Based on these facts, the company has also been sued in a securities fraud class action. The Schubert Firm is investigating potential wrongdoing by Xponential's directors and officers in connection with these allegations.

If you own stock in Xponential and want additional information about your legal rights, please visit our website at https://www.classactionlawyers.com/xponentialupdate.

About Schubert Jonckheer & Kolbe LLP

Schubert Jonckheer & Kolbe represents shareholders, employees, and consumers in class actions against corporate defendants, as well as shareholders in derivative actions against their officers and directors. The firm is based in San Francisco, and with the help of co-counsel, litigates cases nationwide.

Contact
Dustin L. Schubert
Schubert Jonckheer & Kolbe LLP
dschubert@schubertlawfirm.com
Tel: 415-788-4220

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SOURCE Schubert Jonckheer & Kolbe LLP

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