Life Time Fitness, Chanhassen, Minnesota, faces a lawsuit from Low T Holdings Texas Inc. seeking more than $200,000 for breach of contract, according to a suit filed in Texas state district court in June and transferred this month to federal court in Dallas.
Life Time has filed an answer to the lawsuit denying the claims and alleging that Low T, a testosterone replacement therapy company, has failed to pay Life Time $1.89 million due related to a media sponsorship agreement.
The Low T lawsuit alleges that Life Time Fitness did not uphold an agreement with it to promote the Low T treatment exclusively in all 114 Life Time Clubs.
Low T Holdings runs 45 Low T Centers in Arkansas, Colorado, Illinois, Indiana, Kansas, Missouri, Ohio, Oklahoma, Tennessee and Texas. The company claims on its website that more than 13 million men have low testosterone levels and that its testosterone replacement therapy (TRT) can help.
Low T said in the lawsuit that Life Time chose Low T to partner with to offer TRT after looking at other vendors.
In October 2014, Low T complained to Life Time executives that the company was not living up to the agreement because it was not displaying advertising for Low T's therapy in its clubs and it was advertising other company's hormone treatments in some clubs, according to the suit. In addition, Low T complained that Life Time staff told members that Life Time's cheaper nutritional supplements could provide the same benefits as the Low T product.
The lawsuit also alleges that Life Time is guilty of fraudulent inducement because Life Time "falsely represented material facts to Plaintiff for the purpose of inducing Plaintiff to enter into a relationship which it otherwise would not have entered. Defendant utilized its fraud to obtain the payment of monies from Plaintiff. Plaintiff demanded restitution of the monies paid, and Defendant refused to restitute the proceeds of its fraud.
In addition, the suit alleges that Life Time violated the Texas Deceptive Trade Practices Act.
Life Time has asked the court to deny the Low T claim and instead order Low T to pay Life Time the money due to it.