INVESTOR ALERT F45 Training Holdings, Inc. Investors with Substantial Losses Have Opportunity to Lead the F45 Training Class Action Lawsuit - FXLV
Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of F45 Training Holdings, Inc. (NYSE: FXLV) common stock pursuant and/or traceable to F45 Training’s offering documents issued in connection with F45 Training’s July 16, 2021 initial public offering (“IPO”) have until February 6, 2023 to seek appointment as lead plaintiff in the F45 Training class action lawsuit. Captioned Goer v. F45 Training Holdings, Inc., No. 22-cv-01291 (W.D. Tex.), the F45 Training class action lawsuit charges F45 Training as well as certain of its top executives and directors with violations of the Securities Act of 1933.
If you suffered substantial losses and wish to serve as lead plaintiff of the F45 Training class action lawsuit, please provide your information here:
CASE ALLEGATIONS: F45 Training is a fitness franchisor with a business model based on rapid growth through the franchising of low-overhead fitness facilities. F45 Training went public in a July 16, 2021 IPO in which it issued 18.75 million shares priced at $16 per share. F45 Training, via its IPO offering documents, asserted its advantage over traditional owner-operated fitness facilities both because its franchise model “has enabled us to open new studios at an accelerated pace versus the owner-operator model” and because it generated quick revenue because “[f]or the majority of franchises that we sell, we receive an upfront payment from the franchisee.”
However, as the F45 Training class action lawsuit alleges, the IPO’s offering documents misled investors regarding F45 Training’s revenue stream and its ability to maintain its rapid expansion business model. Specifically, the IPO’s offering documents failed to disclose that F45 Training could not maintain new franchise growth because it was offering more favorable payment terms to multi-unit franchisees. F45 Training’s lackluster pace of growth was also accompanied by a massive and unsustainable increase in F45 Training’s accounts receivable and a similar, and equally unsustainable, decrease in its cash and cash equivalents. These practices were not sustainable at the time of the IPO and, when F45 Training could no longer sustain this defective business model, its growth rate and revenue plummeted.