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Investor Alert: Legal Deadline Approaching for Xponential Fitness Class Action Lawsuit

NEW YORK, March 27, 2024 /PRNewswire/ -- The reputable international firm, Rosen Law Firm, is calling attention to the upcoming lead plaintiff deadline on April 9, 2024, for buyers of the Class A common stock from Xponential Fitness, Inc. (NYSE: XPOF). The notification pertains to stock bought within the timeframe of July 26, 2021, to December 7, 2023, collectively known as the "Class Period." Shareholders who invested during these dates are potentially eligible for remuneration without shouldering any out-of-pocket fees or costs, courtesy of a contingency fee agreement.

The Urgent Call for Action

Investors who procured Xponential's Class A common stock throughout the Class Period are now encouraged to proactively affirm their legal rights. The first step is to join the Xponential class action lawsuit by visiting Rosen Legal's submission form, or by calling Phillip Kim, Esq. toll-free at 866-767-3653. Investors can also email for further information regarding the class action. It’s crucial to note that a lawsuit has already been filed. If investors have aspirations of serving as the lead plaintiff, the firm underscores the importance of applying to the Court by no later than the April 9, 2024 deadline. The lead plaintiff will serve as a representative for other class members, guiding the direction of the litigation process.

Assessing Your Legal Counsel: The Rosen Law Firm's Prestige

When dealing with legal matters of this magnitude, selecting a law firm with an impressive track record and recognition plays a vital role. The Rosen Law Firm stands out in this respect, with a history of leadership roles in high-profile securities class actions and shareholder derivative litigation. Warned against law firms acting as mere intermediaries, investors are advised to choose wisely; many firms issue notices without directly conducting litigation but rather refer clients or collaborate with other law firms. Rosen Law Firm operates differently, engaging directly in litigation on a global scale. Achieving numerous monumental settlements, including the largest ever against a Chinese Company, the firm takes pride in its efficacy and recognition.

Rosen Law Firm's Unmatched Record of Success

Rosen Law Firm's attorney achievements are noteworthy, with the firm achieving the prime spot as ISS Securities Class Action Services' top firm for securities class action settlements in 2017. Since 2013, it has secured its place within the top four ranks annually, managing to recover large sums for investors. In the year 2019 alone, over $438 million was secured on behalf of investors. Founding partner Laurence Rosen, has been named a Titan of Plaintiffs' Bar by Law360, acknowledging his and the firm's commendable representation and success rates. Further, the firm’s attorneys have received prestigious acknowledgments from esteemed entities such as Lawdragon and Super Lawyers.

Details of the Allegations Against Xponential Fitness, Inc.

The class action lawsuit allegations against Xponential Fitness signal severe inconsistencies within its operational and financial reports. Accusations include the undisclosed permanent closure of at least 30 stores and erroneous same-store sales and average unit volume metrics that omitted underperforming stores. Remarkably, eight out of ten Xponential brands are claimed to be consistently unprofitable on a monthly basis.

Further claims reveal more than half of Xponential studios were not meeting positive financial returns and over 60% of their revenue was identified as one-time and non-recurring. The lawsuit also asserts that Xponential deeply misled many franchisees by misrepresenting the financial stability and profitability of its studios, as well as distorting the anticipated rate of return for new studios. With franchisees in significant debt, facing high attrition rates, and managing non-viable studios, the path to profitability appears grim. Upon these details reaching the market, the firm claims investors encountered losses due to the discrepancy between Xponential's assured public projections and the reality of its troubled financial state.

The Implications for Xponential Investors

Given these alarming assertions regarding Xponential’s conduct and reporting, investors who joined the class action may seek accountability and reparation for the alleged deceptive practices. No class has been certified at this point; hence, investors are not currently represented by counsel unless they individually retain one. The Rosen Law Firm is offering representation, but investors are free to select any counsel of their preference. Regardless of whether investors take an active role or remain absent class members at this juncture, their potential share in any future recovery does not hinge upon serving as lead plaintiff.

Stay Informed and Connected

Those interested in keeping up to date with the latest developments on this case and more can follow The Rosen Law Firm across various social media platforms. They can connect with the firm on LinkedIn (The Rosen Law Firm), Twitter (@rosen_firm), and Facebook (Rosen Law Firm). These platforms provide immediate updates and insights into the firm’s ongoing cases and results.

Legal Representation Advertising: Past Performance and Future Assurance

It is important for potential clients to understand that advertising from an attorney does not guarantee a similar outcome for every case. The Rosen Law Firm stresses that past results should be seen as achievements rather than predictive guarantees but affirms their commitment to providing robust legal representation aimed at achieving the best possible outcomes for its clients.

Contact Information for Rosen Law Firm

Potential claimants and interested parties seeking further information or wishing to discuss their legal options can reach out directly to The Rosen Law Firm at the provided contact details:

Laurence Rosen, Esq. Phillip Kim, Esq. The Rosen Law Firm, P.A. 275 Madison Avenue, 40th Floor New York, NY 10016 Tel: (212) 686-1060 Toll-Free: (866) 767-3653 Fax: (212) 202-3827 Email: [email protected] Website: www.rosenlegal.com

Final Thoughts

Investors in Xponential Fitness, Inc. have a crucial decision to make ahead of the April 9, 2024 deadline to potentially participate in the significant class action lawsuit as a lead plaintiff. With allegations of misrepresentation and a notable lack of profitable operations disclosed, the lawsuit brought forth by The Rosen Law Firm aims to address the disparities damaging to the shareholders involved. The course of action described in this article serves as a guide to affected investors on how to approach their rights to possible compensation.

By encouraging investors to opt for a law firm with an outstanding history of success—and having presented a formidable track record of its own—The Rosen Law Firm positions itself as a formidable ally to those caught in the wake of Xponential Fitness's alleged misstatements. Through robust litigation and direct investor engagement, The Rosen Law Firm aspires to navigate through the complexities of securities class actions to pursue just retribution for its clients.

Conclusion

With the severity of the accusations lodged against Xponential Fitness, the significance of the approaching deadline cannot be understated. While the potential for financial recovery exists, the collective strength of the investors' response, ushered by a pivotal representative—the lead plaintiff—will be determinant in the ultimate success of the class. The Rosen Law Firm extends its expertise and resources to those affected, aiming to ensure that justice is sought and, where due, awarded. Classified not merely as a series of legal steps, but as a path towards rectifying investor grievances, the journey from this announcement to the deadline embodies a vital period for stakeholders to reflect on their rights and possible recourse.

The shared journey of investors and legal counsel, underscored by The Rosen Law Firm's bold record, contemporaneous communication avenues, and accessible contact points, substantiates the imperative to act decisively. As the information herein concludes, it also begins the countdown towards meaningful action against the alleged financial discrepancies that have affected so many. Investors, spurred by the opportunity for restitution and transparency, are called upon to marshal their resolve and heed the firm's central message: the time to mobilize and safeguard their interests is now.

Note: This news article has been based on a press release distributed by PRNewswire and is intended to inform the public of current events and legal proceedings related to Xponential Fitness, Inc. It does not serve as legal advice, and affected parties are urged to seek individual counsel for their unique circumstances.