SAN FRANCISCO, Feb. 04, 2023 (GLOBE NEWSWIRE) — Hagens Berman Urges F45 Training Holdings, Inc. FXLV Investors who have suffered significant losses Submit your losses now.

Defined class: Buyer of F45 Training Holdings, Inc. July 16, 2021 IPO
Deadline for lead plaintiff: February 6, 2023
Visit: www.hbsslaw.com/investor-fraud/FXLV
Contact a lawyer now: FXLV@hbsslaw.com
844-916-0895

F45 Training Holdings, Inc. FXLV Securities Class Action:

In connection with F45’s IPO, the company touted its business model as “a predictable, resource-efficient model that drives rapid growth” and claimed that “[f]or the majority of the franchises we sell, we receive an upfront payment from the franchisee.” Additionally, as recently as May 16, 2022, F45 assured investors that it had secured a $250 million line of credit that it could allow franchisees to meet its goal of 1,000 new studio openings in 2022.

According to the lawsuit, the defendants made false and misleading statements or failed to disclose material adverse facts about F45’s business, operations and prospects in the IPO offering documents. In particular, the complaint alleges that F45’s rapid growth strategy, unknown to investors, was unsustainable and based on among other thingsFranchisees opening multiple locations in a short period of time and/or dependent on franchisees who require close to 100% financing of their operations to open their business.

Doubts about F45’s representations were raised on July 26, 2022, when F45 announced that: (1) it had cut its financial guidance by approximately 50%; (2) its net studio openings in 2022 would be over 50% lower than promised (ie between 350 and 450 vs. 1,000); (3) the $250 million line of credit “will not be available”; (4) its CEO (Adam Gilchrist) left his position more than a month earlier (on June 24, 2022); and (5) it is laying off about 110 employees.

This news sent F45 shares down 61% on July 27, 2022.

“We focus on investors’ losses and prove that F45 misled investors…