Tough Mudder Racers Want Class Action Lawsuit Revived

Race participants are seeking to revive their Tough Mudder class action lawsuit, claiming that the company failed to pay a settlement fund after a company split.

Tough Mudder obstacle courses have gained widespread recognition. In the endurance events, participants have to complete the obstacle course, which includes pools of water, wall climbing, and barbed wire, through muddy tracks which make it difficult to move effectively.

The plaintiffs originally filed their Tough Mudder class action lawsuit in 2014, over allegations that the company wronged them by relocating their “Mudderella Boston” from Massachusetts to Maine.

Due to the relocation, 6,960 out of 11,300 participants were reportedly unable to attend the event despite paying a total of $618,000 in registration fees.

Plaintiffs also brought claims on the behalf of participants who attended the event but were forced to pay increased costs associated with the venue move.

Tough Mudder Inc. agreed to pay $225,000 to settle claims against them in October 2018. However, the company was allegedly unable to pay the settlement fund.

“Unfortunately, between execution of the settlement agreement and the deadline for payment, temporary and unforeseen circumstances beyond Tough Mudder’s control rendered it unable to pay the settlement amount when due,” Tough Mudder said, according to Law360.

Plaintiffs claim that Tough Mudder’s inability to pay the settlement fund is tied to the company’s recent decision to split its gym chain business from its obstacle course business.

In November 2018, CEO Will Dean reportedly announced that it would be separating the two businesses by creating a new, privately owned company to manage the studio fitness business.

In their attempts to revive their suit, plaintiffs claim that this move aims to separate the successful gym business into the new Tough Mudder Bootcamp company while letting its struggling obstacle course business drown.

“Tough Mudder plans to sell its assets or otherwise make Tough Mudder judgment proof,” the plaintiffs allege.

The case was originally filed in state court, but was removed to federal court by the company. However, a federal judge dismissed the suit from federal court in 2016 after finding that the amount in controversy was not high enough for federal jurisdiction.

With the emergency refiling of the Tough Mudder class action, Tough Mudder has once again removed the case to federal court. The company argues that this time, diversity of citizenship provides grounds for removal.

In its motion for removal, Tough Mudder argues that the plaintiffs shouldn’t be able to revive their claims. The claims must be arbitrated individually, according to the obstacle course company.

“Rather than limiting their claims to those relating to Tough Mudder’s temporary inability to pay the settlement amount […] plaintiffs now seek an impermissible do­-over on their amended complaint,” the company wrote.

The plaintiffs in the Tough Mudder class action lawsuit are represented by James L. O’Connor, C. Deborah Phillips and Patrick J. Osborne of Nickless Phillips and O’Connor, and Barry M. Altman of Altman & Altman.

The Tough Mudder Class Action Lawsuit is Pazol, et al. v. Tough Mudder Inc., et al., Case No. 4:19­-cv-­40010, in the U.S. District Court for the District of Massachusetts.

UPDATE: On Jan. 21, 2019, an executive at Tough Mudder says that despite allegations from runners who filed a class action lawsuit claiming that Tough Mudder financially injured them by moving a race location, the company will pay its settlement over the issue and is not planning to split into two companies to avoid doing so.