Appeals Court Upholds Vibram FiveFingers Class Action Settlement

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Last week, the 1st U.S. Circuit Court of Appeals affirmed a class action settlement over allegations Vibram FiveFingers shoes were deceptively marketed. The appellate panel found that although the amount claimants would receive was far less than expected, the deal was still fair.

The objectors to the Vibram FiveFingers class action settlement had argued that the deal was unfair because Class Members who filed claims would only receive a payment of $8.44 per pair of shoes, even though the notice initially stated they would be entitled to a payment of an estimated $20 and $50 per pair.

“Contrary to the objectors’ claims, there was no misrepresentation in the notices sent to class members,” the appellate panel wrote in the order affirming the Vibram class action settlement. “The Summary Settlement Notice and the Postcard Notice both contained explicit language that recovery could ‘decrease depending on various factors, including the number of valid claims.’”

Further, the panel found that the Class Notice did indicate that the estimated recovery of $20 to $50 per pair of shoes, and that it did not guarantee any amount of recovery. The panel did not find any issue with the district court judge approving the Vibram FiveFingers class action settlement under these circumstances.

“The district court found that a refund of $8.44 per pair of shoes, even if lower than originally estimated, was a fair settlement amount given the uncertainty of success that the plaintiffs faced at trial,” the panel wrote.

“There was no abuse of discretion in the district court’s conclusion that a refund of $8.44 per pair, although modest, was a fair compromise that accounted for the risks faced by both parties if litigation had continued,” the panel stated in the order affirming the Vibram FiveFingers settlement.

The Vibram class action lawsuit was initially filed in March 2012 by plaintiff Valerie Bezdek, who alleged Vibram made false statements about the health benefits of its “minimalist” FiveFingers running shoes. Two similar FiveFingers class action lawsuits were also filed. One case (DeFalco v. Vibram USA LLC) was consolidated with the Bezdek class action lawsuit. The third Vibram class action lawsuit (Safavi v. Vibram USA Inc.) will be dismissed if the settlement becomes final.

The parties submitted a proposed settlement in April 2014, and the deal received preliminary approval on May 12, 2014. The deadline to file a claim for the Vibram class action settlement passed on Sept. 24, 2014.

The three Vibram FiveFingers class action lawsuits will be resolved once this settlement is finalized. It is not yet known when the settlement will become final and when payments will be distributed. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive notifications when this article is updated.

Class Members are represented by Janine L. Pollack of Wolf Haldelstein Adler Freeman and Herz LLP.

The Vibram FiveFingers Class Action Lawsuit is Bezdek v. Vibram USA Inc., Case No. 15-1207, in the 1st U.S. Circuit Court of Appeals.

UPDATE: On June 15, 2016, Top Class Actions readers who submitted timely and valid claims for the Vibram FiveFingers settlement began receiving checks worth as much as $20.21!