November 2, 2017 – 24 Hour Fitness has agreed to a class action settlement that will require it to provide certain gym members what they were promised: a fixed “lifetime” renewal rate.
The settlement arises out of several related lawsuits alleging that 24 Hour Fitness sold prepaid memberships between 2006 and 2009 by orally promising that the annual renewal rate was guaranteed for life, but then in 2016, 24 Hour Fitness began raising certain of those members’ renewal rates. Under the settlement, submitted to a federal district court for preliminary approval on November 1, 2017, 24 Hour Fitness will refund the overcharges and guarantee the original renewal rates for life for those class members who submit a claim form stating that they were told by an employee that the annual renewal amount was guaranteed for life. 24 Hour Fitness has also agreed to a lesser discount of the annual renewal amounts for class members who do not submit declarations.
The hearing on preliminary approval is scheduled for December 8, 2017. Assuming the settlement receives preliminary approval, notices and claim forms will be mailed to class members, along with prepaid return envelopes.
The settlement class is represented by Timothy N. Mathews of Chimicles Schwartz Kriner & Donaldson-Smith LLP, along with their co-counsel at Edelson PC, Tycko & Zavareei, LLP, and Finkelstein Thompson LLP.