F45's Troubling Finances and Legal Woes: A Precarious Situation Unfolds

Krissy Vann | Host, All Things Fitness and Wellness

F45, the fitness franchise associated with Mark Wahlberg, currently faces severe financial difficulties. Their recently disclosed financial reports show a substantial loss of more than $370 million over the past two fiscal years.

However, the financial woes aren't the sole concern for F45. Notably, football legend David Beckham and golfer Greg Norman have initiated legal action against the company, seeking $20 million in the US District Court of California. This legal dispute revolves around unpaid endorsements for the business, with Beckham claiming $18.85 million. F45 acknowledges the legal challenge while maintaining its intent to defend itself vigorously according to their financial statements.

In addition, F45 confronts a class action lawsuit brought by its own investors, including Pledge Capital, with legal representation from US law firm Labaton Sucharow. These investors claim that misleading statements were made by the fitness group in advance of its public offering in July 2021. This public offering had a tumultuous outcome, with F45's stock declining to a record low before being delisted from the New York Stock Exchange.

With these financial and legal challenges in mind, industry observers and investors will be closely monitoring F45's path forward.

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