The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Western District of Texas on behalf of those who acquired F45 Training Holdings, Inc. (“FXLV” or “Company”) (NASDAQ: FXLV) securities issued in or traceable to the Registration Statement filed with the U.S. Securities and Exchange Commission in support of the July 16, 2021 initial public offering of F45 common stock. Investors have until February 6, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
F45, through its subsidiaries, provides fitness services by specializing in innovative, high-intensity group workouts.
F45 conducted its IPO on July 16, 2021, selling 18.75 million shares at a price of $16.00 per share.
On July 26, 2022, F45 issued a press release in which it drastically reduced its financial guidance; disclosed that would open about 60% fewer exercise studios than promised just two months earlier; said that a $250 million credit line was no longer available to the company; disclosed that the company was letting go of about 110 employees; and announced that the CEO, Adam Gilchrist, had resigned. On this news, the price of F45 shares declined by $2.16 per share, or approximately 68.57%, from $3.51 per share to close at $1.35 on July 27, 2022. By December 8, 2022, the price of F45 stock had fallen to $2.96 per share.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that F45’s rapid growth strategy was unsustainable, reliant on, inter alia, franchises opening multiple locations in a short period of time and/or dependent on franchises who required near 100% financing of their operations in order to open for business, a model that was, at the time of the July 2021 IPO, unsustainable.
If you purchased or otherwise acquired F45 securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
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Kirby McInerney LLP
Thomas W. Elrod, Esq.