Fitness Company Sues Software Provider Over Data Transfer Dispute and Alleged Retaliation

Peak Fitness Group LLC has filed a lawsuit in California Superior Court against Vagaro, Inc., alleging the software company engaged in fraudulent advertising and retaliatory business practices when the fitness business attempted to migrate customer payment data to another platform. The Dublin-based software company, which provides scheduling and payment platforms for small businesses, faces multiple allegations including false advertising, fraud, and intentional interference with business relations. According to court documents, Vagaro advertised the ability to import customer credit card information as part of its Premium Import Service, leading Peak Fitness to adopt Vagaro's software. However, when the fitness company later sought to transfer encrypted customer payment tokens to Square, a PCI DSS Level 1–compliant processor, Vagaro refused the request despite its previous representations and industry standards. The complaint alleges this refusal directly contradicted Vagaro's own advertising claims about data accessibility.

The legal dispute escalated when one of Peak Fitness's owners shared a review of his experience on his private X account. In response, Vagaro's Vice President of Legal, Adam Zachs, sent a cease-and-desist letter containing what the lawsuit describes as false statements intended to intimidate and silence the business. Days later, Vagaro publicly posted on social media that businesses own their client data and can export it at any time, creating what the complaint characterizes as a direct contradiction to the company's prior written statements. Vagaro's public image is built on empowering small businesses, but our experience shows the opposite, said one of the founders of Peak Fitness Group LLC. When we exercised our right to write a review, Vagaro retaliated instead of resolving the issue. This case is about transparency, accountability, and protecting small business owners from being misled and bullied.

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. Peak Fitness seeks damages exceeding $450,000, injunctive relief compelling Vagaro to allow lawful data transfers, and punitive damages in the millions for intentional misconduct in preventing their expansion efforts. The case also requests a judicial declaration affirming that small business owners have the right to share truthful information about software vendors without fear of retaliation. No business owner should be silenced for speaking honestly about their experience with a service provider, I believe that is what a review is, Peak Fitness's founder added. Has Vagaro sent cease and desist letters to every person that gave them a bad review online? This case is about more than Peak Fitness — it's about standing up for every small business that relies on truth and fair dealing in the digital marketplace. 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.