According to the Complaint, Xponential Fitness, Inc. claims to be the largest global franchisor of boutique fitness brands, with a platform offering ten brands in categories that include Pilates, indoor cycling, barre, stretching, rowing, dancing, boxing, running, functional training, and yoga.

On June 26, 2023, short-biased analyst firm Fuzzy Panda Research published a report titled “Xponential Fitness (XPOF) – ‘Abusive Franchisor That Is A House Of Cards‘". Among other revelations, the Fuzzy Panda Report alleged that one of the individual Defendants has had a long history of misleading investors, including being exposed on camera for using “boiler room” tactics to mislead investors in connection with a prior venture and issuing false claims that Xponential “never closed a store.” On this news, the price of Xponential common stock fell more than 37%.

The Complaint alleges that during the Class Period, Defendants disseminated materially false and misleading statements and failed to disclose the full truth about the Company's operations, leading to artificial inflation in the price of Xponential common stock.

On May 20, 2024, the Court issued an Order appointing Lead Plaintiff and Counsel.