On June 8, 2018, the United States District Court for the Northern District of California granted final approval to a full-relief settlement benefiting a class of 24 Hour Fitness members who entered into Prepaid membership agreements. Plaintiffs in the case alleged that 24 Hour Fitness sold Prepaid Memberships by promising that the annual renewal rate would be fixed for the life of the member, but then improperly began raising rates in 2016. The settlement, valued at over $24 million, provides full relief for class members who submitted valid claim forms and declarations. Specifically, those class members will receive refunds of the allegedly improper rate increases, and their rates will revert to the original rate so long as they remain members in good standing. Class members who did not submit claims will also benefit through rate reductions for a period of three years.
Chimicles Schwartz Kriner & Donaldson-Smith LLP attorney Timothy Mathews represents the class, along with co-counsel from Edelson PC, Tyko & Zavareei LLP, and Finkelstein Thompson LLP.