24 Hour Fitness settles class action

On November 1, 2017, plaintiffs in a class action against 24 Hour Fitness moved for preliminary approval of a $1.5 million settlement over allegations that the fitness center chain carried out a fraudulent and misleading sales campaign related to its prepaid memberships.

In the suit, the plaintiffs claim that 24 Hour Fitness represented that the fees under its prepaid membership contracts for lifetime members would not increase, but after April 2006, the company changed the membership contracts to provide that the annual renewal charge was only guaranteed for one year beyond the initial term. Despite this modification to the prepaid membership agreement, 24 Hour Fitness’ sales representatives continued to assure prepaid members that their dues would remain the same.

Plaintiffs contended that notwithstanding the oral promises of the company’s sales representatives, the gym started increasing its fees for prepaid members in June 2015.

The proposed settlement class is made up of around 255,000 gym members who have maintained a membership with 24 Hour Fitness on or after April 2015. According to the terms of the agreement, class members who have a valid claim are eligible to receive the following: “(a) continued membership at the initial annual renewal amount for so long as the member timely pays and remains a member in good standing, and (b) if he or she has already paid an increased renewal amount, a full refund of the increased amounts paid (i.e., the difference between the initial annual renewal amount and increased annual renewal amount paid).” For those class members that ended their membership as a result of the company’s fee increase, they will be entitled to the initial annual renewal amount.

The case is:  In re 24 Hour Fitness Prepaid Memberships Litigation, Case No.: 4:16-cv-01668, in the U.S. District Court for the Northern District of California.

Steve Larson
An experienced trial lawyer who handles both hourly and contingent fee cases, Steve has expertise in class actions, antitrust litigation, securities litigation, corporate disputes, intellectual property disputes, unfair competition claims, and disputes involving family wealth. Steve regularly represents individuals and businesses in federal and state court and has obtained class-wide recovery in multiple class actions. A veteran practitioner, Steve's clients value his creative approach to resolving complex litigation matters.


Share on facebook
Share on twitter
Share on linkedin

Legal Disclaimer

The information contained in this blog does not constitute legal advice, and does not create an attorney-client relationship. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this blog.