Interactive Strength Inc. (NASDAQ: TRNR)

The White Law Group is investigating potential claims involving broker dealers who may have unsuitably recommended Interactive Strength Inc. to investors.

What is Interactive Strength Inc.

Interactive Strength Inc. operates under the brand name Forme, a digital fitness platform that combines premium connected fitness hardware products with live virtual personal training and coaching.

This is an initial public offering of the common stock of Interactive Strength Inc. d/b/a Forme. We are offering 1,500,000 shares of our common stock. The initial public offering price is $8.00 per share. No public market currently exists for our common stock. Our common stock has been approved for listing on the Nasdaq Stock Market under the symbol “TRNR.”

In April 2023, Interactive Strength offered shares of its common stock for sale to investors. As of February 28, 2024, the average post offering return was –92.1%. The company’s common stock was traded on the Nasdaq Capital Market, or NASDAQ, under the symbol “TRNR.”

According to its prospectus, investing in TRNR’s securities is highly speculative and involves a high degree of risk.

Performance

As of July 6, 2024, according to Market Watch shares of Interactive Strength Inc. (NASDAQ: TRNR) are down —99.40% in the past 12 month.

• Revenue: In 2023, TRNR’s revenue increased by 41.26% to $962,000 compared to the previous year’s $681,000.
• Losses: The company reported losses of -$51.37 million in 2023, a decrease of 11.77% from 2022’s losses.
• Market Capitalization: As of the investigation date, TRNR’s market capitalization is approximately $1.74 million.

Market Volatility

• The company’s stock price has been volatile, with a weekly movement of 33.2%, ranking it among the 10% most volatile stocks in the US market.
• In comparison, the 10% least volatile stocks in the US market have a weekly movement of 3.2%.

Risks Associated with Small Stock Offerings 

Lack of Information: Many small companies may not provide comprehensive financial disclosures or have limited operating histories.

Market Volatility: Small stocks can be more volatile than larger, established companies, leading to significant price fluctuations.

Liquidity Concerns: These stocks may have low trading volumes, making it difficult to buy or sell shares at desired prices.

Broker Due Diligence

Broker due diligence is a process undertaken by brokerage firms to ensure they are recommending and selling investment products appropriate for their clients. This process protects the interests of the brokerage firm and its clients by ensuring that the investments offered are suitable for the client’s investment objectives, risk tolerance, and financial situation.

If a broker or brokerage firm makes an unsuitable investment recommendation or fails to disclose the associated risks adequately, they may be found liable for investment losses in a FINRA arbitration claim. Fortunately, FINRA provides an arbitration forum for investors to resolve such disputes.

Class Action vs. Individual FINRA Arbitration Lawsuit

You may wonder whether a large class action lawsuit is a better litigation option than an individual FINRA arbitration case.  The answer depends on many factors, but typically if the loss sustained is large (say larger than $100,000), an individual arbitration claim is likely a better option.  Class actions as a recovery option are more appropriate for grouping large numbers of individuals who have small claims – too small to generally pursue individually.

Free Consultation

If you have suffered investment losses in Interactive Strength Inc., you may have recovery options. The securities attorneys at The White Law Group offer free consultations and can be reached at 1-888-637-5510.

About The White Law Group 

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. The firm represents investors across the country in claims against their brokerage firms.