Yahoo Finance Xponential Fitness Suspends CEO Geisler, Discloses Investigation
(Bloomberg) -- Xponential Fitness Inc. suspended its chief executive officer, Anthony Geisler, effective immediately, as a federal investigation into the company expanded.
Most Read from Bloomberg
Xponential said it received notice on May 7 of a probe by the US Attorney’s Office for the Central District of California, according to a statement Friday. The US Securities and Exchange Commission earlier opened an investigation into Xponential.
Brenda Morris, a member of Xponential’s board since 2019, will replace Geisler as interim CEO, according to the statement. The company said it’s cooperating with the SEC and the US Attorney’s Office.
The company has been facing allegations from former and existing franchisees who claimed the company misled them about the financial strength of the businesses prior to signing franchise agreements, Bloomberg Businessweek reported in December. Xponential rejected the accusations in a statement to Bloomberg at the time.
The shares were down 30% to $8.63 at 3:40 p.m. Friday. They have fallen 71% in the past 12 months.
--With assistance from Chris Strohm.
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.
