Xponential Fitness Defrauded Shareholders, Class Action Suits Allege | Franchise News
Pure Barre is one of Xponential Fitness’ brands. Law firms have filed class action lawsuits against Xponential for allegedly defrauding its shareholders.
Xponential Fitness defrauded its investors by making “materially false and misleading statements and omissions regarding Xponential’s business, financial results and prospects,” according to a lawsuit filed last month.
The corporate team at the Irvine, California-based company allegedly didn’t tell its investors that its franchisees “were largely failing” and eight of the 10 brands weren’t drawing a profit on a monthly basis, notes the class action suit, filed on behalf of Xponential shareholders.
Xponential’s revenue is mainly derived from…