SHAREHOLDER ACTION ALERT: Scott+Scott Attorneys at Law LLP Informs Investors That a Securities Class Action Has Been Filed Against F45 Training Holdings, Inc. (FXLV)

New York, New York--(Newsfile Corp. - December 13, 2022) - Scott+Scott Attorneys at Law LLP ("Scott+Scott"), an international shareholder and consumer rights litigation firm, informs investors who purchased F45 Training Holdings, Inc. (NYSE: FXLV) ("F45" or the "Company") that a securities class action has been filed against F45 and certain of the Company's directors and officers, as well as the underwriters of F45's July 2021 initial public offering ("IPO") (collectively, "Defendants"), alleging violations of the Securities Act of 1933. If you purchased F45 common stock pursuant to and/or traceable to the Company's Registration Statement and Prospectus (collectively, the "Offering Documents") issued in connection with the Company's July 2021 IPO, you are encouraged to contact Scott+Scott attorney Jonathan Zimmerman at (888) 398-9312 for more information.

CLICK HERE TO RECEIVE MORE INFORMATION ABOUT THIS CLASS ACTION

F45 is a fitness franchisor based in Texas that went public in July 2021, selling 18.75 million shares at $16 per share pursuant to the Offering Documents. According to the complaint, which was filed in the United States District Court for the Western District of Texas, the Offering Documents were false and misleading and/or failed to disclose material information about the Company's business model, touting, for example, a business model based on rapid growth through the franchising of low-overhead fitness facilities when, in fact, F45's approach to starting new franchises included providing "modified" payment terms for "large multiunit deals," that were not being (and would not be) repaid quick enough to sustain any significant franchise growth.

Beginning on July 26, 2022, the market learned the truth as F45 announced a "Strategic Reorganization and Cost Reduction Plan," under which the Company slashed its growth estimates and committed to "reducing operational expenses." In addition, F45 informed the market: (i) of a significant reduction in financial guidance; (ii) of a dramatic cut in the number of new exercise studios that would open in 2022; (iii) that a $250 million credit line "will not be available"; (iv) that it was letting go approxiamtely 45% of its workforce; and (v) that its CEO had resigned.

On this news, the price of F45 shares plunged over 60%, from a close of $3.51 per share on July 26, 2022, to close at $1.35 per share on July 27, 2022, representing more than a 91% decline from the $16 offering price.

Lead Plaintiff Deadline

The Lead Plaintiff deadline in this action is February 6, 2023. Any member of the proposed Class may seek to serve as Lead Plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed Class.

What You Can Do

If you purchased F45 shares during the Class Period, or if you have questions about this notice or your legal rights, you are encouraged to contact attorney Jonathan Zimmerman at (888) 398-9312 or jzimmerman@scott-scott.com.

About Scott+Scott Attorneys at Law LLP

Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Amsterdam, Connecticut, Virginia, California, and Ohio.

Attorney Advertising.

CONTACT:
Scott+Scott Attorneys at Law LLP
Jonathan Zimmerman
(888) 398-9312
jzimmerman@scott-scott.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/147929