F45 Training Holdings (FXLV) Sued by Barrack, Rodos & Bacine for Securities Law Violations

Rhea-AI Summary

F45 Training Holdings Inc. (FXLV) faces a securities class action lawsuit filed by Barrack, Rodos & Bacine on behalf of investors who purchased shares since its IPO. The complaint, filed in the Western District of Texas, alleges misstatements affecting shareholder interests. Following a significant reduction in financial guidance last July, which included a cut in studio openings and employee layoffs, F45's stock plummeted over 60%. Investors have until February 6, 2023, to seek appointment as lead plaintiff.

Positive

• Barrack, Rodos & Bacine, an experienced law firm, is representing shareholders, indicating potential for investor recovery.

Negative

• F45's share price has declined over 60% since the July 2022 guidance cut, reflecting significant financial distress.
• Reduction in expected studio openings by 60%, impacting growth potential.
• Loss of a $250 million credit line, limiting financial flexibility.
• Layoff of approximately 110 employees, indicating operational challenges.
• CEO Adam Gilchrist's resignation raises concerns about leadership stability.

PHILADELPHIA, PA / ACCESSWIRE / January 4, 2023 / Barrack, Rodos & Bacine has filed a securities class action lawsuit on behalf of shareholders against F45 Training Holdings Inc. ("F45") (NYSE:FXLV) and certain of its executives. The complaint was brought in the District Court for the Western District of Texas (Goer v F45 Training Holdings Inc., et al., No. 1:22-cv-01291).

If you purchased F45 shares at any time after the IPO - or from July 16, 2021 to the present - you are encouraged to contact Barrack, Rodos & Bacine to discuss your rights or for additional information about the case. Please contact Mark Stein or Linda Border at the toll-free number (877) 386-3304 or via email at mstein@barrack.com or lborder@barrack.com.

If you have suffered a loss arising from purchases in F45 stock, you have until February 6, 2023 to file a motion with the Court seeking appointment as lead plaintiff.

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, while touting a Predictable, Asset-Light Model Driving Rapid Growth. The company reported results and issued guidance that was generally expected by the market for about a year after the IPO.

However, on July 26, 2022, F45 issued a press release in which it drastically reduced its financial guidance; disclosed that it 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.

The disclosures in the press release sent the price of F45 shares down over 60% on July 27, 2022, and it has continued since that time to trade at less than $4.00 per share.

With offices in Philadelphia, PA, San Diego, CA, and New York City, NY, Barrack, Rodos & Bacine has more than four decades of experience prosecuting securities law class actions, including cases involving company misstatements 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. Prior results do not guarantee similar outcomes.

SOURCE: Barrack, Rodos & Bacine

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FAQ

What is the lawsuit against F45 Training Holdings (FXLV) about?

The lawsuit alleges that F45 made misstatements that harmed shareholders, particularly following a drastic reduction in financial guidance.

Who is leading the class action lawsuit against F45?

The class action lawsuit is led by Barrack, Rodos & Bacine, a law firm with extensive experience in securities litigation.

What led to the decline in F45's stock price?

F45's stock price dropped over 60% following a press release that included reduced financial guidance and operational cutbacks.

What is the deadline for investors to join the lawsuit against F45?

Investors have until February 6, 2023, to file a motion with the court to seek appointment as lead plaintiff.

How has F45's operational strategy changed since its IPO?

F45 announced it would open about 60% fewer studios than previously promised, indicating a significant shift in its growth strategy.