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Snap Fitness has agreed to a $2.9 million settlement to end a proposed class action lawsuit claiming that the fitness company charges unauthorized membership fees.
An estimated 141,000 Snap Fitness customers are expected to benefit from the class action settlement.
Preliminary settlement approval was requested by lead plaintiff Thomas Dwyer on March 1.
This proposed settlement deal was reached after “extensive arm’s-length negotiations” and mediation between Snap Fitness and allegedly affected members.
If approved, the Snap Fitness class action settlement would resolve allegations that the gym charged customers a $35 club enhancement fee without authorization, a fee that customers say violated the gym’s membership agreements.
“Dwyer, based on his evaluation of the facts and applicable law and his recognition of the substantial risk and expense of continued litigation, submits that the proposed settlement is in the best interest of the class and will provide an immediate meaningful recover,” the Snap Fitness class action settlement states.
Dwyer originally filed the Snap Fitness unauthorized fee class action lawsuit in May 2017. He alleged that Snap Fitness breached its contract with members and was unjustly enriched by its collection of the $35 fee.
The plaintiff says he learned that Snap Fitness members were being charged a $35 club enhancement fee in an email sent by the company in February 2017. He claims that the email notified members that they would be charging members an “enhancement fee” to fund an upgrade to the gym’s facilities.
He says he expressed his displeasure to the company, and told Snap Fitness that he did not see any references to an extra fee in his membership contract.
Dwyer claims that the local franchise told him that the fee was new as of a few weeks ago and was therefore not in his contract. Allegedly, the employee said that he would have to wait for more information from corporate to tell Dwyer more. Dwyer says he was ultimately charged for the fee.
The plaintiff asked an Ohio federal court to certify a nationwide Class of Snap Fitness members and a subclass of Ohio members who were assessed the fee without their knowledge.
The motion also seeks up to $350,000 in attorneys’ fees, litigation expenses, and awards.
Snap Fitness produced more than 1,000 documents in discovery for the unauthorized gym fee class action lawsuit, prompting Dwyer to ask for time to file an amended complaint claiming that Snap Fitness had violated consumer protection laws in 40 states. He also brought forward fraud claims in the amended complaint.
However, that motion was pending while the customers and Snap Fitness agreed to mediation that produced the proposed settlement agreement.
Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.
The Snap Fitness members are represented by Bryce A. Lenox of the Law Office of Bryce A. Lenox LLC and Brian T. Giles of The Law Office of Brian T. Giles LLC.
The Snap Fitness Unauthorized Club Enhancement Fee Class Action Lawsuit is Dwyer v. Snap Fitness Inc., Case No. 1:17-cv-00455, in the U.S. District Court for the Southern District of Ohio.
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20 thoughts onSnap Fitness Will Pay $2.9M To Settle Gym Fees Class Action
Hello, Snap Fitness in La Crescent, MN, is still charging the fee for March 2020. They have used the fee for a water fountain in the past which after being installed would be a fixed asset.
Thank you MR. Dwyer for standing up against corporate wrongdoing. I too had trouble when trying to cancel with Kristin at Snap Fitness in Lakewood area of Kansas City. The owner tried to tell me I didn’t give sufficient notice even though I gave 2 weeks more than required. I finally produced phone records and forced the owner Kristen, to do the right thing. Sad when you’re running such a non profitable business that the only resort you take is trying to swindle your loyal members out of one more month when they cancel. I am still with Snap but am going to a facility off 150 Hwy and the owners are sweethearts, Told them of my experience and they promised me that’d never happen. Sadly, some owners give the entire franchise a bad name.
Good for you mr. Dwyer. Thank you for pursuing this. I received my partial refund today. I got the same BS answer.
I had 2 members get a $5 check. I told them to cash it….. should I not?
I was charged this fee without notification. As far as enhancements go they painted one wall. Took the money and ran. New owner charged it again this year, I refused to pay.
I got a 5.oo dollar settlement check in the mail. Should i cash this check?
No! sign it and sent it to me
Lmao ?