Planet Fitness Admits Its Strength Pivot Went Too Far. Now a Suit Alleges It Misled Investors

Planet Fitness’ recent strength training-focused marketing campaign was meant to fuel membership growth but intimidated core customers instead, according to a new lawsuit

A newly filed class action alleges Planet Fitness, its chief executive officer and its former chief financial officer overstated the success of its marketing strategy touting strength training and targeting more advanced gym-goers, ahead of a steep one-day stock decline in May.

Planet Fitness shares fell from $63.96 to $44.01 on May 7, after the gym giant cut its 2026 growth guidance and withdrew a long-term outlook it had reaffirmed less than three months earlier. This year so far, the “Judgement Free” gym chain’s stock has fallen by around 52%.

The complaint, filed July 14 in the U.S. District Court for the District of New Hampshire, names CEO Colleen Keating and former CFO Jay Stasz as individual defendants alongside the fitness chain. 

Plaintiff Norie Matsunaga is proposed as class representative for investors who bought Planet Fitness common stock between November 6, 2025, and May 6, 2026. The complaint seeks unspecified damages, interest and legal fees on behalf of the class.

The suit centers on the marketing shift Planet Fitness made starting in the fourth quarter of 2024, when the company began featuring more advanced gym-goers and strength offerings in its “We Are All Strong on This Planet” campaign, a departure from its newbie-friendly and non-intimidating tone that has long defined the brand. 

It was one of Keating’s early strategic moves as CEO, having taken the top job at the high-value, low-price (HVLP) gym in June 2024.

The messaging coincided with Planet Fitness’s rollout of new plate-loaded strength equipment – including bench press, hack squat and seated calf raise machines – which the company planned to install in nearly all of its U.S. locations amid the strength training boom.

Analysts were largely receptive. Heading into 2025, several expressed confidence in the fitness giant and its strategy.

According to the complaint, Keating told analysts throughout the class period that the campaign was resonating and driving membership growth, and the company extended it into 2026. The complaint also alleges Keating and Stasz touted a planned increase to the price of its Black Card premium membership tier, which management said had been supported by years of testing, and unveiled a three-year growth algorithm at the November 2025 investor day projecting low-double-digit revenue growth.

But on May 7, 2026, Planet Fitness disclosed that the strength-focused messaging had succeeded with fitness-minded consumers but had, in CEO Colleen Keating’s words, “pivoted too far.” On that day’s earnings call with investors, Keating added that Planet Fitness had built strong ownership with “the beginner or the person who might be more ‘gymtimidated’” — which it said comprises roughly 70% of the population without a gym membership — but that recent brand-health research showed the messaging “did resonate a bit more intimidating.”

The company cut its 2026 same-club sales growth guidance to about 1% from a prior range of 4% to 5%, paused the national Black Card price increase and withdrew the three-year growth algorithm entirely.

Not all of the campaign’s creative matched Keating’s assessment, however. One spot from the campaign featured people of varying ages and abilities — including a pregnant woman — strength training, reading as consistent with Planet’s longstanding “Judgement Free Zone” branding and inclusive tone.

The complaint also points to Stasz’s abrupt March 9 departure as CFO, which Planet Fitness said at the time was not the result of any dispute over financial reporting, and characterizes it as evidence the company knew of a coming shortfall before its public statements changed. 

Planet Fitness has since filled the CFO role on a permanent basis. On June 25, the company named Sudhanshu Priyadarshi, a former Keurig Dr Pepper executive, as CFO and president of international.

The hire also reinforces the company’s international ambitions. At its investor day last fall, Planet Fitness said it was targeting one to two new large-scale foreign markets a year, building on more than 180 clubs and over 1 million members across Canada, Mexico, Australia, Spain and Panama.

Despite the suit, Planet Fitness shares closed at $52.24 on Wednesday, up 2.63% for the day.

Planet Fitness hasn’t yet responded to ATN’s request for comment.