Investors sue for piece of high-growth male hormone chain in Southlake

Posted Monday, Aug. 05, 2013  comments  Print Reprints
A

Have more to add? News tip? Tell us

Michael Sisk, the retail testosterone king of Tarrant County, wants to do for male hormone shots what McDonald’s has done for Big Macs and fries.

But two early investors say that his Southlake-based Low T Center chain’s rapid growth — from one location to 32 since 2009 — has come at their expense, according to a lawsuit they filed in Judge Dana Womack’s 348th state district court last week.

A May article in Forbes said Sisk created Low T by being his own financial “angel,” using $500,000 he and his wife had saved.

In the lawsuit, Sandra Gardner and Reed Way, who live in Colleyville, as does Sisk, say they each invested $75,000 in his first location after the flagship Low T Center in Southlake was up and running, according to Brian Hail, their Dallas attorney. Moreover, Way’s brother invested in the Southlake unit, but is not party to the suit, said Hail.

Sisk’s wife, Mickala, owns a controlling 51 percent chunk of the Plano branch opened in 2010 and she was to handle the day-to-day operations, while the two silent partners would be given first dibs on investing in any new outlets, the lawsuit says. But they were not given a chance, it alleges.

Neither Sisk responded to requests for comment over two days. But Low T’s general counsel, Grapevine attorney David Moraine, called the allegations “ridiculous to the point of being comical” and added: “Needless to say, Low T is very much looking forward to its day in court.”

Hail says that when his clients requested a meeting so they could consider putting in more money, Michael Sisk told them that he’d rather write a check and buy them out. But Sisk only offered to give back their original investment although the chain has grown significantly in the past three years, he said.

Gardner, a national accounts manager for a juice company, and Way, owner of Classic Blinds of Bedford, are seeking 49 percent ownership of the current 32 Low T Centers that reportedly are raking in $4 million a month in nine states. Five more are about to open.

According to Hail, clients pay $395 for a monthly injection, and the Plano location alone had revenues of $1.2 million last year. Moraine said Low T Plano is a separate management entity and not tied to the other clinics.

While some medical experts are cautious about the increasingly rampant use of testosterone injections, Hail said, “It looks to me to be very profitable.”

Barry Shlachter, 817-390-7718 Twitter: @bshlachter

Looking for comments?

We welcome your comments on this story, but please be civil. Do not use profanity, hate speech, threats, personal abuse or any device to draw undue attention. Our policy requires those wishing to post here to use their real identity.

Our commenting policy | Facebook commenting FAQ | Why Facebook?