Fraud Lawsuit Against USA Fitness Dismissed Due To No-Show

NORTH HOLLYWOOD, CA — A former gym manager who sued USA Fitness after saying he was fired for complaining about unsafe conditions and the defrauding of members had his lawsuit dropped by a judge Tuesday after he failed to appear in court.

After Los Angeles Superior Court Judge Stephanie Bowick said on May 17 she would terminate Carlos Martin's lawsuit if he did not appear in court, she was forced to do just that when neither Martin nor an attorney representing him appeared in court today. The lawyer who originally filed the lawsuit withdrew from the case in November, saying there was an "irreparable breakdown in the attorney-client relationship."

The case was dismissed without prejudice, meaning Martin can refile the case if he provides a proper explanation for his failure to appear.

According to the lawsuit, Martin was recruited to manage the USA Fitness' North Hollywood and Sylmar locations. He said he received positive feedback from supervisors and peers until he spoke up against the company's "scheme to knowingly defraud existing and potential gym members" and the "unsafe working conditions for himself and other employees."

Martin said he and other sales team members were instructed to not discuss cancellation policies or automatic renewals with new members. Employees were also told to make false representations to induce new customers into memberships, the suit said.

The suit further alleged team members were told to not provide cancellation address to existing members, that USA Fitness kept billing members after their terms expired and that members were charged additional penalties if they did not have a checking account on file.

USA Fitness in the pre-pandemic era also required the gym sales staff, including Martin, to work outdoors in extreme summer heat to sell memberships in violation of Cal/OSHA rules that obligate employers to protect workers "from recognized serious hazards in the workplace, including heat- related hazards," the suit stated.

Martin alleged he was required to walk around North Hollywood to enroll new members despite having a bad back, and he claims that management was aware of his condition.

When Martin complained about USA Fitness' alleged practices and work conditions, the company owner replied, "You're only here to sell memberships. You can get the hell out if you don't want to want to do things my way," the suit stated.

Martin said he was fired on September 25, 2018 and suffered a damaged reputation, missed career opportunities and substantial financial losses.

City News Service contributed to this report.