NEW YORK, March 9, 2016 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Planet Fitness, Inc. ("Planet Fitness" or the "Company") (NYSE: PLNT). Such investors are advised to contact Robert S. Willoughby at email@example.com or 888-476-6529, ext. 9980.
The investigation concerns whether Planet Fitness and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
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."
On this news, Planet Fitness stock has fallen as much as $1.15, or 7.77 %, to $13.66 during intra-day trading on March 9, 2016
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Florida, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT: Robert S. Willoughby Pomerantz LLP firstname.lastname@example.org
SOURCE Pomerantz LLP