Tue, 27 Sep 2022

PHILADELPHIA, PA / ACCESSWIRE / August 15, 2022 / F45 Training Holdings Inc., a Mark Wahlberg-backed fitness franchisor based in Texas, went public in July 2021, when it sold 18.75 million shares priced at $16 per share. Until recently, the company reported results and issued guidance that was generally expected by the market.

However, on July 26, 2022, just a year after the IPO, F45 issued a press release in which it disclosed: (1) a reduction in its financial guidance, from a range of $255 to $275 million to a new range of $120 to $130 million; (2) for the year it would open about 60% fewer exercise studios than promised just two months earlier (or 350 to 450 of them, versus 1,000); (3) a $250 million credit line 'will not be available' (4) the company was letting go of about 110 employees; and (5) the CEO, Adam Gilchrist, had resigned the previous month. The announcement was made after Wahlberg had sold significant amounts of his own stock in the company. CEO Gilchrist received payments valued at over ten million dollars on his departure.

The disclosures in the press release sent the price of F45 shares down over 60% on June 27, 2022, and the stock is now trading at about $2.00 per share - over an 80% fall from its IPO price.

If you are an F45 shareholder and have suffered losses in your investment in F45, you are encouraged to contact Mark Stein, Director of Investigations at Barrack, Rodos & Bacine, at the toll-free number 877-386-3304, or via email at mstein@barrack.com, to learn more about the firm's investigation and your legal rights and options.

Philadelphia-based Barrack, Rodos & Bacine has more than four decades of experience prosecuting securities law class actions, including cases involving accounting fraud and insider trading, and has achieved some of the largest recoveries in the history of securities litigation in the U.S. The firm's largest recoveries on behalf of investors include $6.19 billion for WorldCom investors, $3.32 billion for Cendant investors, $1.05 billion for McKesson investors, and $970.5 million for AIG investors.

SOURCE: Barrack, Rodos & Bacine

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