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Fitness App Founders Accused of Betrayal
17 Jan
Summary
- Gen Z founders allegedly pushed out a fourth partner.
- Lawsuit claims exclusion from ownership and profits.
- Alleged luxury spending contrasts with partner's exclusion.
A legal war has erupted over the rapid ascent of the fitness app Cal AI, with allegations that its Gen Z founders have pushed out a fourth partner. The influencer, Hussein Beydoun, 24, claims he was excluded from ownership and profits after helping transform the app into a success. He alleges a freeze-out merger was used to strip him of his 25 percent stake.
Beydoun asserts he was brought on in April 2024 to market Cal AI, and his promotions caused the app to go viral, making it a top health and fitness app. However, just two months later, he claims the other founders conspired to remove him, offering a meager $5,000 buyout for his stake.
While Beydoun alleges the other founders have indulged in lavish spending, including luxury cars and a rented mansion, they deny his claims. One founder called the lawsuit a 'frivolous money grab,' stating Beydoun contributed 'nothing' and abandoned the company in writing before its success. The lawsuit seeks to unwind the merger and restore the original ownership structure.
