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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
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
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216 thoughts on24 Hour Fitness Prepaid Membership Class Action Settlement
I filed the necessary paperwork and I am being told it was never received and I no longer qualify. This also happened to my dad who also filed the paperwork. Who can I reach out to, to ensure 24 hour fitness fixes this?
I was never contacted in anyway about this class action law suit. As a result I did not know to file a claim and the deadline passed. I should have been in the class for the law suit. What can I do now? 24 Hour has just given me the run around and are charging me the raised amount for my renewal fee.
I just renewed my lifetime membership dues and was charged the higher rate????
Me too. And I haven’t received any refunds!
If it was settled on 6/8/18 then why did they charge me today the higher annual fee?
You should contact the settlement administrator or class counsel with your questions: https://prepaidmembershipsettlement.com/FAQ
The website for this is now not functional. Maybe it’s just today, but I checked it a few weeks ago and it said that all reimbursements should be mailed out by August 23rd, 2018. Has me worried though that the website is down now.
My family members and I the anunal renew day are 08/08/18. Why the membership fees did not reduce to original payment ?
You should contact the settlement administrator or class counsel with your questions: https://prepaidmembershipsettlement.com/FAQ
When can I reinstate my membership since they terminated it? I received no renewal notice, phone call, letter, or email.
You should contact the settlement administrator or class counsel with your questions: https://prepaidmembershipsettlement.com/FAQ
Hello, I was never contacted regarding the lawsuit, but have had a prepaid membership with annual renewal since 2007. I log on once a year to pay my annual rate and I’e never seen 24hr never attempted to raise it. Should I be concerned with them trying to raise my rates now?
Or maybe it 2016 I can’t remember. And that should read, I’ve never seen 24hr attempt to raise my rate. Should I be concerned with them trying to raise my rates now?
How can I get my original monthly fee base as a result of the 24 hour prepaid membership class action lawsuit? thanks
For those who canceled their membership as a result of this increase, how and when are we able reclaim our old membership at the original promised price?
When do we receive our refunds and notices that our annual fees are once again at the original amounts as promised for life?
The settlement was granted final approval on 6/8/18. There is a 30 day period in which appeals can be filed. According to the settlement website, refunds will be mailed out by 8/24/18, as long as no appeals are filed.