The company founded by Instagram fitness mogul Kayla Itsines has continued its fight against a former employee in court, arguing that the growing influencer’s rival exercise app could cost her up to $1 million in lost revenue.
The Bikini Body Training Company, founded by Ms Itsines, is trying to block Queensland Crossfit guru and Instagram star Cass Olholm from launching her new fitness app, Train With Cass, which is set to go on sale on the Apple App Store from Thursday.
The company, represented in the South Australian High Court by Nicholas Swan, said on Tuesday Ms Olholm, who worked as a contractor for Ms Itsines before leaving in February this year, had breached the restraint of trade by preparing her business to young.
Bikini Body wants Ms Olholm to abide by a 12-month restraint of trade clause, which would have banned her from competing with the company until February 2024.
Ms Olholm, represented by Thomas McFarlane, argued that the ban period expired after six months and her new business could continue.
At a hearing last week, Judge Dart recommended that both parties pursue mediation to avoid spending ‘very large sums of money’ on lawyers.
However, the two influencers failed to reach a deal and were back on Tuesday to battle it out in court, with millions of dollars potentially hanging in the balance.
Bikini Body Training Company’s Kayla Itsines (above) launched a legal battle against her former employee, Cass Olholm
Mr Swan argued that Ms Olholm had potentially pulled the order from the Sweat app, reading a number of comments left on her Instagram celebrating the proposed launch of her new venture.
“The timing couldn’t be more perfect for me, my Sweat subscription ends in October, so excited for your app,” said Mr Swan, reading a reader’s post.
He also argued that Ms Olholm’s ‘attractive power’, or the goodwill she possessed and which Bikini Body had paid her for, should not be used to build a rival business within the 12-month limitation clause.
“The main question in this case, as we see it, is whether until February next year is a reasonable time,” he said.
‘This is the essential point. In our respectful submission, 12 months, in the context of the history of this matter, in the context of the nature of the business, in the context of what is involved, is eminently reasonable.’
Mr Macfarlane said it was unreasonable for the company to try to curb Ms Olholm’s goodwill, something he said she had built up on her own over several years, including years when she was outside the company and something outside non-compete protections. .
Ms Itsines wants Ms Olholm (above) to delay the launch of her new fitness app, Train with Cass
“What is being sought to be enforced against my client is a restriction on my client using her skills and experience,” he said.
“Using these skills and experience in the fields of fitness and exercise, she is qualified to compete with the applicant’s product.”
He said there was no allegation that Ms Olholm had access to confidential company information, including customer lists, or that she had used confidential information to run her business.
The court heard Bikini Body feared Ms Olholm’s move into the app market could cause them to lose up to $1 million from subscribers moving from Sweat to Train With Cass.
Mr Macfarlane disputed the figure and said any identifiable loss to Bikini Body would be ‘minimal’ and ‘nothing close to the $1m figure’.
Ms. Itsines sold Sweat to US company iFit in 2021 for a reported $400 million.
The court heard that Bikini Body boasts an annual revenue of around $65 million.
The two influencers were close collaborators in the fitness space, with Miss Olholm regularly appearing in Ms Itsines’ Facebook videos after she joined the company in 2020.
The Train With Cass program, if continued next week, will be billed at $21.99 per month or $139.99 per year.
The two influencers (above) were close collaborators in the fitness space, with Ms Olholm regularly appearing in Ms Itsines’ Facebook videos.
The court heard Ms Olholm had spent around $580,000 preparing the new business.
Mr Swan is asking the court to order an injunction blocking Ms Olholm from starting her new business until the contract’s 12-month restraint of trade clause expires.
Mr Macfarlane is asking the court to dismiss Bikini Body’s claim.
Judge Jack Costello said he would deliver his verdict at 2.15pm on Thursday.
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