PUBLISHED ONJanuary 02, 2023 12:11 AM
NEW YORK, Jan. 01, 2023 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of F45 Training Holdings, Inc. (“F45 Training” or the “Company”) (NYSE: FXLV). Such investors are advised to contact Robert S. Willoughby at newaction@pomlaw.com or 888-476-6529, ext. 7980.
The investigation concerns whether F45 Training and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On or around July 16, 2021, F45 conducted its initial public offering (“IPO”), issuing 18.75 million shares of common stock priced at $16.00 per share.
On July 26, 2022, just a year after the IPO, and just a little more than two months after reiterating its previously stated growth targets, F45 issued a press release entitled “F45 Training Announces Strategic Update.” The press release described “strategic updates to align the Company more closely with macroeconomic conditions and current business trends and prepare for the next phase of studio and membership growth.” According to the press release, the Company’s “strategic updates” informed the market: (1) of a significant reduction in its financial guidance, from a range of $255 to $275 million to a new range of $120 to $130 million; (2) of a dramatic cut in the number of new exercise studios that it would open in 2022—down approximately 60% (or 350 to 450 new studios, versus 1,000); (3) that a $250 million credit line “will not be available” to the Company; (4) that it was letting go around 110 employees, equaling approximately 45% of its workforce; and (5) that F45’s Chief Executive Officer (“CEO”), Adam Gilchrist, had resigned his position as CEO, effective July 24, 2022.
On this news, F45’s stock price fell $2.16 per share, or 61.54%, to close at $1.35 per share on July 27, 2022, representing more than a 78% decline from the Company’s offering price of $16.00 per share.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
888-476-6529 ext. 7980
