Barrack, Rodos & Bacine (BR&B) Continues Its Investigation of F45 Training Holdings Inc.

Rhea-AI Summary

Barrack, Rodos & Bacine is investigating F45 Training Holdings Inc. (NYSE:FXLV) for potential violations of federal securities laws. Following a series of troubling disclosures on July 26, 2022, F45 significantly reduced its financial guidance from $255-$275 million to $120-$130 million. The company plans to open 60% fewer exercise studios and has lost its $250 million credit line. Additionally, CEO Adam Gilchrist resigned after a substantial payout, and Mark Wahlberg has sold over a million shares, causing F45's stock to plunge over 80% since its IPO.

Positive

• None.

Negative

• Severe reduction in financial guidance from $255-$275 million to $120-$130 million.
• Plans to open 60% fewer exercise studios than previously stated.
• Loss of $250 million credit line.
• CEO Adam Gilchrist resigned with a payout exceeding $10 million.
• Stock price fell over 80% from its IPO price, currently around $2.50.

PHILADELPHIA, PA / ACCESSWIRE / August 31, 2022 / Barrack, Rodos & Bacine (BR&B) announces that it is continuing its investigation of F45 Training Holdings Inc. ("F45") (NYSE:FXLV) for potential violations of federal securities laws.

F45 Training Holdings Inc., a Mark Wahlberg-backed fitness franchisor based in Texas, went public in July 2021, when it sold 18.75 million shares priced at $16 per share. Until recently, the company reported results and issued guidance that was generally expected by the market.

However, on July 26, 2022, just a year after the IPO, F45 issued a press release in which it disclosed: (1) a reduction in its financial guidance, from a range of $255 to $275 million to a new range of $120 to $130 million; (2) for the year it would open about 60% fewer exercise studios than promised just two months earlier (or 350 to 450 of them, versus 1,000); (3) a $250 million credit line "will not be available"; (4) the company was letting go of about 110 employees; and (5) the CEO, Adam Gilchrist, had resigned the previous month. The announcement was made after Wahlberg had sold significant amounts of his own stock in the company. CEO Gilchrist received payments valued at over ten million dollars on his departure.

The disclosures in the press release sent the price of F45 shares down over 60% on July 27, 2022, and the stock is now trading at about $2.50 per share - over an 80% fall from its IPO price.

Furthermore, Mark Wahlberg sold over a million shares of F45 earlier this year, and the Company's co-founder and former CEO, Adam Gilchrist, has now reportedly "disappeared," after he left the company on a $10 million golden handshake and sold his $14 million home on Sydney's Northern Beaches.

If you are an F45 shareholder and have suffered losses in your investment in F45, you are encouraged to contact Mark Stein, Director of Investigations at Barrack, Rodos & Bacine, at the toll-free number 877-386-3304, or via email at mstein@barrack.com, to learn more about the firm's investigation and your legal rights and options.

Philadelphia-based Barrack, Rodos & Bacine has more than four decades of experience prosecuting securities law class actions, including cases involving accounting fraud and insider trading, and has achieved some of the largest recoveries in the history of securities litigation in the U.S. The firm's largest recoveries on behalf of investors include $6.19 billion for WorldCom investors, $3.32 billion for Cendant investors, $1.05 billion for McKesson investors, and $970.5 million for AIG investors.

SOURCE: Barrack, Rodos & Bacine

View source version on accesswire.com:
https://www.accesswire.com/714148/Barrack-Rodos-Bacine-BRB-Continues-Its-Investigation-of-F45-Training-Holdings-Inc

FAQ

What are the recent issues facing F45 Training Holdings Inc. (FXLV)?

F45 is facing severe challenges including a significant reduction in financial guidance, fewer studio openings, loss of a credit line, and leadership changes.

How much did F45 Training Holdings reduce its financial guidance?

F45 reduced its financial guidance from a range of $255-$275 million to $120-$130 million.

What happened to F45's stock price after the recent disclosures?

F45's stock price fell over 60% on July 27, 2022, and has dropped over 80% from its IPO price, now trading around $2.50.

What leadership changes occurred at F45 Training Holdings?

CEO Adam Gilchrist resigned following significant financial disclosure and received a payout of over $10 million.

What actions is Barrack, Rodos & Bacine taking regarding F45?

Barrack, Rodos & Bacine is investigating F45 for potential violations of federal securities laws.