SAN FRANCISCO, Oct. 11, 2022 (GLOBE NEWSWIRE) — Hagens Berman calls for F45 Training Holdings, Inc. FXLV Investors who have suffered significant losses Submit your losses now.
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F45 Training Holdings, Inc. FXLV Detection:
The investigation focuses on statements made by F45 before and after the company’s IPO in July 2021.
In connection with the F45 IPO in particular, the company promoted the rapid scalability of its business model in order to promote the success of its franchisees. Additionally, as recently as May 16, 2022, F45 Training assured investors that it had secured a $250 million line of credit that it could extend to franchisees to meet its goal of 1,000 new studio openings in 2022.
Doubts about F45’s representations surfaced on July 26, 2022, when F45 announced that: (1) 2022 net studio openings would be more than 50% less than promised (i.e. between 350 and 450 versus 1,000); (2) the $250 million line of credit “will not be available”; (3) its CEO (Adam Gilchrist) left his position more than a month earlier (on June 24, 2022); and (4) it is laying off about 110 employees.
This news sent F45 shares down 61% on July 27, 2022.
“We are focused on investor losses and whether F45 misled investors about the scalability of its model and whether in fact $250 million in committed funds was available for franchisees,” said Reed Kathrein, the partner of Hagens Berman, who led the investigation.
If you have invested in F45 and are experiencing significant losses or have knowledge that may assist the firm’s investigations, Click here to discuss your legal rights with Hagens Berman.
Whistleblower: Those with nonpublic information about F45 should consider their options to assist in the investigation or use the SEC’s whistleblower program. Under the new program, whistleblowers who…
