F45 Training Shareholder Lawsuit Settlement Reaches Turning Point After IPO Fallout

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Forecasts Collapse, Leadership Shifts

Studio Openings Drop, Stock Sinks

According to the lawsuit, the fallout was swift. Studio openings reportedly fell by as much as 60% compared with company forecasts. Layoffs followed. The chief executive officer stepped down in July 2022. The company’s stock price tumbled.

Within two years of going public, F45 was delisted from the New York Stock Exchange and shifted to over-the-counter trading — a dramatic reversal for a brand once marketed as a global fitness phenomenon.

Kennedy Lewis Investment Management LP, a major investor in the company, later took F45 private in a $385 million deal. The transaction represented a steep decline in valuation from its public-market debut.

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Settlement Terms Pending

In a letter filed in U.S. District Court in Austin, the parties told Judge David Ezra they plan to seek preliminary approval of the settlement by Feb. 13. The specific terms of the agreement were not disclosed.

The filing indicated the parties are still finalizing documentation of the formal settlement, which will be distributed to class members once completed.

The agreement marks a potential closing chapter in a case that followed F45 from Wall Street optimism to market retrenchment — a cycle as intense as the workouts the company built its brand upon.