Xponential Fitness Misled on Metrics Before Offering, Suit Says

Xponential Fitness Inc. misrepresented its franchisees’ financial health in the lead-up to its secondary public offering, an investment fund says in a proposed class action.

Substantial stock drops followed adverse reports on the metrics and, in May, an announcement that federal prosecutors were investigating, the West Palm Beach, Fla., police pension fund says. It filed its complaint in the US District Court for the Central District of California against Xponential, members of its leadership, and several underwriters.

The stock price for the Irvine, Calif.-based owner of Club Pilates, CycleBar, and other boutique fitness brands has climbed again recently from its …