Xponential Fitness suspends CEO Geisler and discloses investigation

(Bloomberg) — Xponential Fitness Inc. has suspended its chief executive, Anthony Geisler, effective immediately as the federal investigation into the company expands.

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According to a statement Friday, Xponential said it became aware of an investigation by the U.S. Attorney’s Office for the Central District of California on May 7. The US Securities and Exchange Commission had previously opened an investigation into Xponential.

Brenda Morris, an Xponential board member since 2019, will replace Geisler as interim CEO, according to the statement. The company said it was cooperating with the SEC and the U.S. Attorney’s Office.

The company is facing allegations from former and existing franchisees who claimed the company misled them about the companies’ financial strength before signing franchise agreements, Bloomberg Businessweek reported in December. At the time, Xponential denied the allegations in a statement to Bloomberg.

Shares fell 30% to $8.63 as of 3:40 p.m. Friday. They have fallen 71% in the last 12 months.

– With support from Chris Strohm.

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