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24 Hour Fitness USA Inc. has reportedly agreed to settle a consolidated class action lawsuit accusing the fitness club of increasing gym membership fees despite promising consumers that the annual renewal rate for “lifetime memberships” would remain the same for a lifetime.
Plaintiffs Kevin O’Shea, Mark Vitcov and Rod Morris filed the first 24 Hour Fitness class action lawsuit on April 1, 2016. Plaintiff Russell Marchewka filed a similar membership fee class action lawsuit against the fitness club on April 29, 2016.
The plaintiffs allege 24 Hour Fitness promised them that, if they purchased a prepaid membership, their annual renewal amount would remain fixed as long as they remained members in good standing.
They claim that these representations were made to prospective members in 24 Hour Fitness’ advertising and marketing materials. However, the plaintiffs say that their contracts did not guarantee that the annual renewal amounts would be fixed.
According to the 24 Hour Fitness class action lawsuit, the following contract terms were buried in fine print: “The initial renewal amount … is for the first 12 month renewal term only immediately following the expiration of your prepaid term” and “24 Hour … may increase all subsequent renewal amounts….”
The plaintiffs assert that 24 Hour Fitness began increasing the annual renewal amounts for certain members in June 2015.
24 Hour Fitness disputes the plaintiffs’ argument that this information was buried in fine print because it was located on the first page of the membership agreement under the bold heading: “Prepaid Initial Annual Renewal Amount (Optional Renewal).” The fitness club maintains that its membership fee increases were appropriate.
The two 24 Hour Fitness class action lawsuits were consolidated on June 28, 2016 and captioned In re: 24 Hour Fitness Prepaid Memberships Litigation.
24 Hour Fitness filed a bid to dismiss the membership fee class action lawsuit, and a federal judge granted the motion on Sept. 1. The plaintiffs subsequently filed an amended complaint and the parties engaged in mediation.
24 Hour Fitness denies the allegations but agreed to pay $1.5 million to settle the renewal fee class action lawsuit and avoid the burden and expense of ongoing litigation.
Class Members of the proposed 24 Hour Fitness settlement include anyone who enrolled in a 24 Hour Fitness membership agreement marketed or sold after April 1, 2006 which allows the member to prepay between one and three years of dues and renew annually for an annual renewal amount, and who maintained the prepaid membership on or after April 1, 2015.
Under the terms of the proposed 24 Hour Fitness settlement, Class Members are eligible to claim a refund of the extra fees they paid. They will also have the opportunity to keep their membership fees fixed for life as long as they remain in good standing. Members who do not file a claim will have their membership fees capped and will automatically receive a 10 percent refund on fees they already paid.
Top Class Actions will post updates to this 24 Hour Fitness 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 plaintiffs are represented by Edelson PC, Finkelstein Thompson LLP, Chimicles & Tikellis LLP, and Tycko & Zavareei LLP.
The 24 Hour Fitness Membership Renewal Fee Class Action Lawsuit is 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.
UPDATE: January 2018, the 24 Hour Fitness prepaid membership class action settlement is now open. Click here to file a claim.
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88 thoughts on24 Hour Fitness Reaches $1.5M Renewal Fee Class Action Settlement
I was also told my membership works for all active clubs, sport club on my original manual contract shows it and on the online electronic doesn’t show it any of you had that problem? sales person did not tell me detail about super sport club in 2008 all he ever said is all active clubs
This class action doesn’t cover all the Arizona residents because 24 sold all gyms to la fitness. Sure we can get the difference we had to pay in the past, but it does not cover the future. This is not fair and I am going to the hearing in June in Oakland to state how unfair the settlement is. All Arizona residents should be able to get their annual rate back for life!
I joined the suit and they are still charging me twice the original amount. I just paid my annual renewal today and nothing has changed.
Same here! Maybe we have to wait until June 1 , 2018 to get the answer.
Same story here. Just got out of the military and they promised me a lifetime annual membership renewal of only $21 a month if I paid like $500 for the first 3 years, then in 2015 they jacked it up to $79.99 a year and I was like WTF. These lying bastards. This serves them right.
I was dropped, lifetime membership $64.20 yearly dues since 1990. I was told I terminated my membership; no true! When the club I frequented closed, I was dropped. They will not accept payment for dues, and basically told me to f/o!
Same here! Paid 500 for 3 yr and a renewal rate of $29.00 a year! Even I know that’s an amazing deal. But in 2015 they billed for $79. I was so very excited to receive the class action forms( which I filled out as fast as I could)! Haven’t received any funds as of yet. Anyone know the status of refunds?
I want to thank those initial members that got this rolling. You took action that will certainly help the rest of us.
Thanks so much!
You’re all awesome ?
Please add me to the list for updated info and forms
I filled out the paperwork a couple months ago and sent it in but my renewal is up and I called and they said I will have to pay the hundred dollars which is what they raised it to you it was previously $49 my membership is due on the 10 Not sure if they’re going to give me what I had to pay last year and this year over there charging me $100 now so that would mean I have overpaid $100 once I have to pay this membership fee as well
I received the class action letter and filled out. I paid for my membership out right over 700 with a fixed renewal of 56 for life. Yea right I turned around and all of the sudden it jumped to 161.00 per year. Contacted 24 Hr all they said was it all in the fine print. It ended up in cancellation status in 2016. I told them it wasn’t right so, yea, I want my membership reinstated at the 52 annual as promised for life. I’ll keep it too just to rub it in there face. We WON !!!!!!!!!!!!!!!!!!!!!
Did they reinstate your membership? I ask cause I’m The same boat … please any info would help! Thanks
I had the exact situation as you. Exact money amount, etc. Looking for a great June 2, 2018 result from this class action suite. I have renewed continually since 2015 and for 2018 at the $161 rate, and hopefully this will be resolved in 2018.
Paid $650 upfront for first 3 years back in 2007 then $39.99 after for life but my rate was jacked up to $99.99 per year in 2015…glad to see these theft bastards got caught!
Their gym equipment is so damn old and they refused to update them…cheap and greedy bastards only want to collect you membership fee and do nothing for members!
You’ve got what you deserve!
That happened to me too.