Xponential Class Action Lawsuit: understanding your rights and options

If you suffered losses in Xponential stock, contact Xponential stock loss lawyer Timothy L. Miles about a Xponential lawsuit

introduction to the Xponential Class Action Lawsuit

Contact us today for a free case evaluation about the the Xponential class action lawsuit

The Xponential class action lawsuit has garnered significant attention its since its filing. Investors who suffered losses in Xponential Fitness, Inc. (NYSE: XPOF) publicly traded Class A common stock between July 26, 2021, and December 7, 2023, have come forward to seek justice for alleged securities fraud. This article aims to provide an in-depth understanding of the Xponential class action lawsuit, including its background, allegations, lead plaintiff process, and potential outcomes. If you suffered losses in Xponential stock, continue reading to learn more about your rights and options.

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Understanding the Xponential Class Action Lawsuit

The Xponential class action lawsuit, filed as City of Taylor General Employees Retirement System v. Xponential Fitness, Inc., accuses Xponential and certain top executives of violating the Securities Exchange Act of 1934. The Xponential lawsuit alleges that throughout the Class Period, Xponential made false and misleading statements, failed to disclose crucial information, and engaged in deceptive practices that artificially inflated the value of its stock.

Allegations in the Xponential Class Action Lawsuit

The Xponential class action lawsuit alleges that Xponential misled investors by misrepresenting its financial health. The allegations include:

1. Store Closures: Xponential permanently closed at least 30 stores, but this information was not properly disclosed.
2. Misstated Metrics: Xponential misrepresented its same-store sales (SSS) and average unit volume (AUV) metrics by excluding underperforming stores, leading to a distorted view of the company's financial performance.
3. Brands Operating at a Loss: Eight out of ten Xponential brands were losing money monthly, a fact that was allegedly concealed from investors.
4. Unprofitable Studios: More than 50% of Xponential studios did not generate positive financial returns, indicating potential financial instability.
5. One-Time and Non-recurring Revenue: Over 60% of Xponential's revenue was derived from one-time and non-recurring sources, suggesting a reliance on unsustainable income streams.
6. Franchisee Misrepresentation: Xponential misled franchisees into opening studios by misrepresenting the financial profile, profitability, and expected rate of return.
7. Franchisee Debt and Non-viable Studios: Many Xponential franchisees were burdened with substantial debt, experienced high attrition rates, and operated non-viable studios with no realistic path to profitability.

Impact of Fuzzy Panda Report and Businessweek Article

​On June 26, 2023, Fuzzy Panda published a report on Xponential that revealed further troubling information. The report highlighted Xponential CEO Anthony Geisler's history of misleading investors and shed light on the company's alleged misleading statements regarding store closures and the financial health of its franchisee base. The report's findings caused a sharp decline in Xponential's stock price.

Later, on December 7, 2023, Businessweek published an article titled "Club Pilates, Pure Barre Owners Say Xponential Left Them Bankrupt." The article featured interviews with former business partners, employees, and franchisees of Xponential who accused the company of leading them into a "financial nightmare." The article also highlighted Geisler's combative management style and aggressive tactics. This news further negatively impacted Xponential's stock price.

Lead Plaintiff Process in the Xponential Class Action Lawsuit

The Xponential class action lawsuit allows investors who suffered losses in Xponential stock to seek appointment as lead plaintiffs. The lead plaintiff represents the interests of all affected investors and plays a crucial role in coordinating with legal counsel, gathering evidence, and making strategic decisions throughout the litigation process. 

How to Become a Lead Plaintiff

To become a lead plaintiff, an investor must file a motion to be appointed as lead plaintiff within a specified deadline.  The lead plaintiff is typically an institutional investor or a large shareholder with the greatest financial interest and the resources to effectively pursue the lawsuit. It is important to consult with an experienced Xponential stock loss lawyer to understand the lead plaintiff process and evaluate your eligibility.

Benefits of Serving as Lead Plaintiff

​Serving as lead plaintiff in the Xponential class action lawsuit offers several advantages, including:

1. Negotiating Power: Lead plaintiffs can negotiate more competitive attorney fees and reduce litigation costs by actively monitoring class counsel.
2. Active Involvement: Lead plaintiffs actively oversee and monitor the progress of the lawsuit, review important filings, and make strategic decisions.
3. No Financial Risk: Lead plaintiffs do not bear any financial risk as lead counsel advances all costs and expenses incurred in the litigation, which are reimbursed only if there is a successful settlement or judgment recovery.
4. Participation in Settlement: Lead plaintiffs play a crucial role in participating in mediation and approving any potential settlement, ensuring their interests and the interests of the class are represented.
5. Long-Term Benefits: Lead plaintiffs who continue to own Xponential stock may benefit from governance reforms resulting from the litigation.

Lead Plaintiff Deadline and Class Membership

Lead plaintiff motions for the Xponential class action lawsuit must be filed with the court no later than April 9, 2024. It is essential to file a motion to be appointed as lead plaintiff within this timeframe to actively participate in the lawsuit. However, even if an investor misses the lead plaintiff deadline, they will still be considered a class member and entitled to share in any potential settlement or recovery.

To determine class membership, an investor must have purchased Xponential stock during the class period, which spans from July 26, 2021, to December 7, 2023. If an investor purchases shares outside of this period, they will not be able to participate in the Xponential lawsuit.

Options for Class Members in the Xponential Lawsuit

​As a class member in the Xponential lawsuit, you have two primary options:

1. Remain in the Class: By staying in the class, you will be represented by lead counsel and share in any potential settlement or recovery obtained through the lawsuit. It is crucial to carefully review any court-ordered notice and follow the instructions to ensure your participation.
2. Opt-Out and File a Separate Lawsuit: If you believe you have a significant loss that justifies it, you have the option to opt out of the class action lawsuit and pursue your separate lawsuit against Xponential. However, opting out means you forfeit the right to participate in any settlement or recovery obtained through the class action.

Potential Outcomes of the Xponential Class Action Lawsuit

The Xponential class action lawsuit may follow several stages before reaching a resolution. These stages typically include:

1. Consolidation and Lead Plaintiff Appointment: All related cases are consolidated, and a lead plaintiff or group of lead plaintiffs is appointed to represent the class.
2. Filing of Consolidated Complaint: The lead plaintiff files a consolidated complaint, outlining the allegations against Xponential and its executives.
3. Defendants' Motion to Dismiss: Xponential and its executives may file a motion to dismiss the lawsuit, arguing that the allegations lack merit or fail to meet legal requirements.
4. Class Certification: The court determines whether to certify the lawsuit as a class action, allowing all eligible investors to participate in the litigation and share in any potential recovery.
5. Discovery and Settlement Talks: Both parties engage in the discovery process, exchanging relevant documents and information. Settlement talks and mediation may also occur during this stage.
6. Motions for Summary Judgment: The parties may file motions for summary judgment, presenting legal arguments to the court based on the evidence gathered during discovery.
7. Trial: If the case does not settle, it may proceed to trial, where a jury or judge will determine liability and damages.
8. Appeal: After a trial, either party may choose to appeal the court's decision, leading to further legal proceedings.

The potential outcomes of the Xponential class action lawsuit include a favorable settlement for the plaintiffs, a verdict in favor of the plaintiffs at trial, or a dismissal of the lawsuit if the court finds insufficient evidence or legal grounds.

Hiring an Xponential Stock Loss Lawyer

If you suffered losses in Xponential stock and wish to pursue legal action, it is crucial to consult with an experienced Xponential stock loss lawyer. A skilled attorney experienced in securities fraud can guide you through the complex legal process, protect your rights, and advocate for your interests. They will have in-depth knowledge of securities laws, extensive experience in class action lawsuits, and the resources to effectively represent your case.

One name that immediately pops up is nationally known and widely respected Nashville lawyer Timothy L. Miles, who has valuable experience and has received numerous awards, mostly due to his high ethical standards, and hard work ethic, including most recently being named a Top 25 Class action lawyer by the National Trial Lawyers Association, and has maintained an AV rating from Martindale-Hubble since 2014, was named a 2023 Top Rated Litigator and 2023 Top Rated Lawyer by Martindale-Hubble and ALM, and was recently named a 2023 Elite Lawyer of the South by Martindale-Hubble for the fifth year in a row, and was a recipient of Avvo Client’s Choice Award in 2021, in 2022 was featured in the Top 100 Lawyers Magazine and received the Lifetime Achievement Award by Premier Lawyers of America (2019–2021).

​This will most likely be the only call you need to make. (855) 846–6529 or [email protected]. 

Conclusion

The Xponential class action lawsuit presents an opportunity for investors who suffered losses in Xponential stock to seek justice and recover their damages. By understanding the allegations, lead plaintiff process, and potential outcomes, investors can make informed decisions about their legal options. If you suffered losses in Xponential stock, consult with an experienced Xponential stock loss lawyer like Timothy L. Miles to evaluate your case and determine the best course of action. Remember, time is of the essence, as the lead plaintiff deadline approaches. Take the necessary steps to protect your rights and hold Xponential accountable for any alleged securities fraud.

CONTACT A XPONENTIAL​ STOCK LOSS LAWYER TODAY ABOUT A XPONENTIAL CLASS ACTION LAWSUIT

​If you suffered losses in Xponential​ stock, contact Xponential​ stock loss lawyer Timothy L. Miles today for a free case evaluation about an Xponential class action lawsuit. Call today and see what an Xponential stock loss lawyer could do for you if you suffered losses in Xponential​​​ ​stock.

The Law Offices of Timothy L. Miles
Tapestry at Brentwood Town Center
​300 Centerview Dr., #247
Brentwood, TN 37027
Phone: (855) 846–6529
​Email: [email protected]

Xponential​ stock loss lawyer Timothy L. Miles

Nashville attorney Timothy L. Miles is a nationally recognized shareholder rights attorney raised in Nashville, Tennessee. Mr. Miles has dedicated his career to representing shareholders, employees, and consumers in complex class-action litigation. Whether serving as lead, co-lead, or liaison counsel, Mr. Miles has helped recover hundreds of millions of dollars for defrauded investors,  shaped precedent-setting decisions, and delivered real corporate governance reforms. Judges and peers have repeatedly recognized Mr. Miles’ relentless advocacy for the underdog, as well as his unbendable ethical standards. Mr. Miles was recently selected by Martindale-Hubbell® and ALM as a 2022 Top Ranked Lawyer, 2022 Top Rated Litigator. and a 2022 Elite Lawyer of the South. Mr. Miles also maintains the AV Preeminent Rating by Martindale-Hubbell®, their highest rating for both legal ability and ethics. Mr. Miles is a member of the prestigious Top 100 Civil Plaintiff Trial Lawyers: The National Trial Lawyers Association,​Class Action:  Class Action: Top National Trial Lawyers, National Trial Lawyers Association (2023), a superb rated attorney by Avvo, a recipient of the Lifetime Achievement Award by Premier Lawyers of America (2019) and recognized as a Distinguished Lawyer, Recognizing Excellence in Securities Law, by Lawyers of Distinction (2019); a Top Rated Litigator by Martindale-Hubbell® and ALM  (2019-2022); America’s Most Honored Lawyers 2020 – Top 1% by America’s Most Honored (2020-2022).  Mr. Miles has published over sixty articles on various issues of the law, including class actions, whistleblower cases, products liability, civil procedure, derivative actions, corporate takeover litigation, corporate formation, mass torts, dangerous drugs, and more.  Please visit our website or call for free anytime.

CONTACT                                                      
The Law Offices of Timothy L. Miles
Tapestry at Brentwood Town Center
​300 Centerview Dr., #247
Brentwood, TN 37027
​​Phone: (855) 846-6529
​Email: [email protected]