The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired F45 Training Holdings Inc. (“F45” or the “Company”) (NYSE: FXLV) common stock pursuant and/or traceable to the Company’s Registration Statement and accompanying Prospectus and Supplemental Prospectus (collectively, the "Registration Statement") issued in connection with the Company's July 2021 initial public offering (“IPO”). F45 investors have until February 6, 2023 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On July 16, 2021, F45 conducted its IPO, selling 18.75 million shares of common stock at $16 per share.
On July 26, 2022, after the market closed, F45 issued a “Strategic Update,” disclosing that it now expects its fiscal 2022 revenue “between $120 million and $130 million, compared to the prior guidance of $255 million to $275 million.” Based on a “comprehensive review of its strategic and financial priorities,” the Company would reduce its global workforce by about 110 positions. F45 also announced that its founder, CEO, and President, Adam Gilchrist, had stepped down.
On this news, F45’s stock price fell $2.16, or 61.5%, to close at $1.35 per share on July 27, 2022 (representing more than a 78% decline from the IPO price), thereby injuring investors.
The complaint filed in this class action alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that F45’s rapid growth strategy was unsustainable, reliant on, inter alia, franchisees opening multiple locations in a short period of time and/or dependent on franchisees who required near 100% financing of their operations in order to open for business, a model that was unsustainable.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased F45 common stock during the Class Period, you may move the Court no later than February 6, 2023 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased F45 common stock, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of F45 Training Holdings Inc. (FXLV) Investors