An investigation for investors in NYSE:PLNT shares over potential securities laws violations by Planet Fitness and certain of its directors and officers was announced.
Investors who purchased shares of Planet Fitness Inc (NYSE:PLNT), have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
The investigation by a law firm focuses on whether a series of statements by Planet Fitness regarding its business, its prospects and its operations were materially false and misleading at the time they were made.
On March 9, 2016, Spruce Point Capital Management published a report on Planet Fitness entitled “All Pumped Up, and Nowhere to Go but Down.” Among other issues, Spruce Point described a “Questionable Business Strategy with Unachievable Revenue Goals [and] . . . unsustainable margins.” The report also noted governance and accounting and financial disclosure concerns, pointing to “aggressive ‘gross’ revenue accounting,” a “misclassification of placement revenue,” a “[p]otential understatement of the tax benefits payable by $569m,” and a “lack of transparency on key performance metrics . . . and scant disclosure of performance targets.” Spruce Point further reported that “weak internal controls l[ed] to the sentencing of a Planet Fitness corporate systems manager in Jan[uary] 2016 who stole $1m through a fraudulent invoice scheme.”
Shares of Planet Fitness Inc (NYSE:PLNT) declined on March 9, 2016 to as low as $13.38 per share.
On March 21, 2016, NYSE:PLNT shares closed at $15.60 per share.
Those who purchased NYSE:PLNT shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com