FAQ: Peak Fitness Group LLC Lawsuit Against Vagaro, Inc. - Allegations of Fraud and Retaliation
Summary
Peak Fitness Group LLC has filed a lawsuit against Vagaro, Inc. alleging fraud, misrepresentation, and retaliatory business practices after the software company prevented the fitness business from transferring customer payment data and sent a cease-and-desist letter in response to a negative review. The case highlights important issues about small business data ownership rights, vendor transparency, and protection against retaliatory practices in the digital marketplace.
What is this lawsuit about?
Peak Fitness Group LLC is suing Vagaro, Inc. for allegedly engaging in false advertising, fraud, and retaliatory conduct after Peak Fitness attempted to migrate its customer payment data to another processor and when one of the owners shared a negative review of their experience.
Who are the parties involved in this lawsuit?
The plaintiff is Peak Fitness Group LLC, a California-based fitness business, and the defendant is Vagaro, Inc., a Dublin-based software company that provides scheduling and payment platforms for small businesses.
What specific allegations are made against Vagaro?
The complaint alleges false advertising about data import capabilities, refusal to allow lawful transfer of encrypted customer payment tokens to Square, sending a cease-and-desist letter with false statements to intimidate the business, and contradictory public statements about data ownership rights.
Why did Peak Fitness want to transfer their customer data?
Peak Fitness sought to move their system to another platform and transfer encrypted customer payment tokens to Square, which is a PCI DSS Level 1-compliant processor, as part of their business expansion plans.
What triggered the retaliatory conduct allegations?
When one of the owners of Peak Fitness publicly shared a review of his experience on his private X account, Vagaro’s Vice President of Legal, Adam Zachs, sent a cease-and-desist letter containing false statements intended to intimidate and silence the business.
What legal claims are included in the lawsuit?
The lawsuit includes causes of action for fraud and deceit, breach of contract, unfair business practices, retaliation and abuse of process, and intentional interference with business relations.
What remedies is Peak Fitness seeking?
Peak Fitness seeks damages exceeding $450,000, injunctive relief compelling Vagaro to allow lawful data transfers, punitive damages in the millions for intentional misconduct, and a judicial declaration affirming small business owners’ right to share truthful information without fear of retaliation.
Where and when is this case being heard?
The case, Peak Fitness Group LLC v. Vagaro, Inc., is proceeding before Judge Craig van Rooyen in the Superior Court of California, County of San Luis Obispo, and was filed on October 22, 2025.
Why is this case significant for other small businesses?
This case addresses fundamental issues about small business data ownership rights, transparency in vendor relationships, and protection against retaliatory practices when businesses exercise their right to share honest reviews about service providers.
What does Peak Fitness hope to achieve beyond financial compensation?
Beyond financial damages, Peak Fitness seeks to establish legal precedent protecting small businesses’ rights to transfer their customer data and share truthful information about software vendors without fear of retaliation or legal threats.
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