24 Hour Fitness Prepaid Membership Class Action Settlement

Members who paid annual renewal fees for a 24 Hour Fitness membership may qualify for refunds and lower fees, thanks to a class action settlement.

The settlement resolves allegations that 24 Hour Fitness offered members lifetime renewals for an annual fee that would not change, then later raised that fee on some members.

The plaintiffs claim that 24 Hour Fitness USA Inc. offered a membership plan in which, if the member prepaid one to three years’ worth of membership, they could maintain the membership indefinitely by paying the same annual renewal fee every year.

These annual fees were allegedly supposed to remain the same for the rest of the member’s life, as long as they wanted to remain a member.

But with a change in ownership, the plaintiffs say, 24 Hour Fitness began to alert members that it would raise their annual renewal fees, in some cases to as much as double or triple the previous rates.

Fine print in the membership agreement supposedly allowed 24 Hour Fitness to raise the fee. But the plaintiffs say the company promised them that the agreements were “just paperwork” and didn’t matter, and that 24 Hour Fitness would never increase the fees.

This settlement results from two consolidated lawsuits. Plaintiffs Kevin O’Shea, Mark Vitcov, Rod Morris filed their 24 Hour Fitness class action lawsuit in April 2016. They were followed one month later by plaintiff Russell Marchewka, who claimed his renewal fees would nearly double. The claims were consolidated into a single action and joined by additional plaintiffs Michael Losquadro and Dipti Shah.

24 Hour Fitness maintains that nothing about the way it administered these fees was wrong. The company says it agreed to this settlement to avoid the risk and expense of further litigation.

The parties reached the current 24 Hour Fitness settlement and submitted it for preliminary court approval by November 2017. The settlement provides different benefits depending on whether the Class Member submits a Claim Form.

Those who do submit a Claim Form are generally eligible to continue their 24 Hour Fitness membership by continuing to pay their original fee amount. Those who do not submit a form will benefit from limitations on how 24 Hour Fitness may increase their annual renewal fees.

Claim Forms may be submitted online or by mail. Printed Claim Forms were supplied with the settlement notice mailed to known Class Members.

The Claim Form and declaration for this settlement also applies to another settlement brought by the Orange County and Contra Costa County’s District Attorney’s offices, referenced in the settlement website as the Government Settlement. Both settlements require Class Members to submit a Claim Form and declaration by the Feb. 26 deadline.

Class Members can object to the settlement or exclude themselves from it by submitting a written request no later than Feb. 26, 2018.

Who’s Eligible

The settlement Class covers persons who, according to 24 Hour Fitness’s records, enrolled in or updated a 24 Hour Fitness Prepaid Membership on or after April 1, 2006 and were still enrolled in a prepaid membership as of April 1, 2015.

Potential Award

Refunds and Reduced Fees

The available benefits are very detailed, depending on the individual Class Member’s situation. Consult the settlement website for full details.

Generally, Class Members who submit a Claim Form will be allowed to continue their memberships by paying the annual renewal fee at its initial amount, whether or not their fees have been increased. Those whose fee has increased may get the fee reinstated at its initial amount and may receive a refund for any fee amounts they paid over and above the initial fee amount. Those whose memberships were cancelled after they received notice of a fee increase can get their memberships reinstated at the original fee amount.

Class Members who do not submit a claim form may see their annual renewal fees increased, but 24 Hour Fitness will be restricted in when and how much it can raise those fees. The restrictions vary depending on the type of membership. Those whose fees have already increased may receive a discount on future fees. Those whose memberships were cancelled may be able to reinstate them at a reduced amount.

Proof of Purchase

To submit a Claim Form and declaration online, Class Members must provide either the claimant ID number provided in their settlement notice or their prepaid membership agreement number.

Claim Form

CLICK HERE TO FILE A CLAIM »

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

2/26/2018

Case Name

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. This caption include consolidated cases  3:16-cv-01668-JSW and 3:16-cv-02359-JSW.

Final Hearing

6/1/2018

UPDATE: The 24 Hour Fitness Prepaid Membership Class Action Settlement was granted final approval on June 8, 2018. Let Top Class Actions know when you receive a check in the comments section below or on our  Facebook page.

Settlement Website

www.PrepaidMembershipSettlement.com

Claims Administrator

24 Hour Fitness USA Inc.
Prepaid Memberships Settlement – 5753
c/o Rust Consulting
P.O. Box 2616
Faribault, MN 55021-9616
1-888-773-8392

Class Counsel

Rafey S. Balabanian
Eve-Lynn Rapp
EDELSON PC

Timothy N. Mathews
Catherine Pratsinakis
CHIMICLES & TIKELLIS LLP

Kristen L. Sagafi
TYCKO & ZAVAREEI LLP

Gordon M. Fauth, Jr.
FINKELSTEIN THOMPSON LLP

Defense Counsel

Elizabeth L. Deeley
Christopher W. Keegan
Austin L. Klar
KIRKLAND & ELLIS LLP