Interactive Strength Sues Sportstech and Its CEO
Interactive Strength has filed two distinct lawsuits in connection with the previously disclosed defaulted loan to Sportstech Brands Holding GmbH, and the corresponding personal guarantee by Ali Ahmad. The Company further announced that a public auction of 100% of the shares in Sportstech pledged to Interactive Strength will be conducted on March 11, 2026, at 11:00 a.m. Central European Time in Frankfurt am Main, Germany. Trent Ward, CEO, commented: "We are taking next steps in asserting our rights under the loan agreement - on multiple fronts at the same time, as we said we would. We extended Sportstech every opportunity to resolve this matter, and we have lost patience with their nonsensical posturing. With respect to the lawsuits: those complaints were shared with Sportstech and its bank lenders, Commerzbank, Deutsche Bank, and Volksbank Mittweida, in advance of filing in an effort to minimize legal costs and facilitate a negotiated resolution. Unfortunately, there was no sincere engagement on a resolution, despite the straight-forward legal rights we have in the loan agreement with Sportstech and personal guarantee by Ali Ahmad. In terms of the auction: any qualified bidder can participate by registering in advance, providing a bank guarantee from a German financial institution covering their maximum bid, and appearing in person in Frankfurt. Multiple outcomes, such as receiving a value of the shares above our claim, or acquiring Sportstech at a value near our claim, represents a positive, and near-term, resolution for our shareholders. We have pursued this process deliberately and transparently, and the March 11 auction date provides some certainty on timing." The first claim is against Sportstech for its failure to repay approximately $6M in principal, interest, and discount under the Loan Agreement dated January 27, 2025, as amended by the Loan Extension Agreement dated May 22, 2025. Both the loan agreement and the amendment were filed with the U.S. Securities and Exchange Commission last year and are governed by German law, and are also accessible from TRNR's IR site. The complaint seeks full repayment of the outstanding balance together with default interest and enforcement costs. There is also an additional claim for $0.6M, plus default interest, that could be filed in Luxembourg for the extension fee that Sportstech elected to incur. Additionally, the second claim is personally against Ali Ahmad, Founder and CEO of Sportstech, and seeks to enforce the personal guarantee he provided in connection with the loan obligations as notarized under German law in January 2025. Under the terms of that guarantee, Mr. Ahmad is personally liable for amounts owed to TRNR and not paid by Sportstech, and can be pursued without waiting on the Sportstech claim.
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- Legal Proceedings Update: Sportstech Brands Holding GmbH is engaged in multiple lawsuits against Interactive Strength Inc., which claims it will pursue all legal avenues to recover debts and plans a public auction on March 11, 2026, potentially impacting Sportstech's equity structure.
- Protective Legal Measures: On January 8, 2026, Sportstech filed an action to oppose enforcement measures aimed at preventing any potential public auction, demonstrating its firm stance on protecting its rights.
- Court Clarification Impact: TRNR has clarified in court proceedings that it is not seeking a private sale of shares, which Sportstech interprets as a confirmation of its legal position, asserting that any disposal of shares must comply with strict German legal standards.
- Willingness for Settlement: Despite the ongoing legal challenges, Sportstech expresses a willingness to seek an amicable settlement, believing that an out-of-court resolution is achievable, showcasing its flexibility and confidence in navigating the legal dispute.









