SoulCycle Customers Seek Approval of $9.2M Class Action Settlement

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SoulCycle Inc. has reportedly agreed to pay up to $9.2 million to settle a class action lawsuit alleging the fitness company sells gift certificates that can only be redeemed in a short period of time and then fails to offer refunds for the expired gift certificates. On Friday, the plaintiffs asked a California federal judge to preliminarily approve the proposed deal.

Plaintiff Rachel Cody originally filed the SoulCycle class action lawsuit on Aug. 25, 2015. She claims the indoor cycling exercise chain requires its customers to purchase certificates before they can sign up for classes at its popular studios.

Although class prices for SpinCycle reportedly vary by region, a single spin class may cost $30 to $40. Cody says SpinCycle customers are encouraged to purchase larger packages of classes at a discount.

After a customer purchases a class or a package of classes, the classes must be used within a certain period of time before they expire, the SoulCycle class action lawsuit alleges. The expiration date reportedly depends on the total number of classes purchased. If a customer purchases one class, it expires after 30 days while a series of 30 classes expires after one year.

According to the SoulCycle class action lawsuit, many customers found it difficult to use their classes within the allotted time frame because of the lack of class availability. SoulCycle failed to issue refunds for classes that expired, and kept the money paid for unused classes, the SoulCycle class action lawsuit claims.

In the SoulCycle class action lawsuit, Cody asserted SoulCycle violated the Electronic Funds Transfer Act, the Consumer Legal Remedies Act, and the California gift certificate law.

On Feb. 10, 2016, Cody along with plaintiff Lindsey Knowles filed a second amended complaint. SoulCycle sought to have the class action lawsuit dismissed. In April 2016, the court dismissed the claims that SoulCycle violated the California gift certificate law claim, but allowed the EFTA and CLRA claims to proceed.

On April 21, 2017, the parties notified the court that they had reached a settlement in principle.

The proposed SoulCycle settlement will provide benefits to two Classes: a nationwide Class and a Class of consumers with a California billing address who, during the relevant Class Period, purchased a SoulCycle class that expired unused. The Class Period for the nationwide Class is Aug. 25, 2014 through Feb. 10, 2017, and the Class Period for the California Class is Feb. 1, 2012 through Feb. 10, 2017.

Under the terms of the SoulCycle class action settlement, SoulCycle will reinstate up to two expired classes per Class Member, or the Class Member can choose to receive a cash payment of up to $25 per expired class (up to a maximum of $50). The cash payment may be reduced pro rata depending on the number of Class Members who file claims for the cash option.

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Cody and Knowles are represented by Daniel P. Hipskind and Dorian S. Berger of Berger & Hipskind LLP and Nicholas Diamand of Lieff Cabraser Heimann & Bernstein LLP.

The SoulCycle Gift Certificate Class Action Lawsuit is Rachel Cody and Lindsey Knowles v. SoulCycle Inc., Case No. 2:15-cv-06457-MFW-JEM, in the U.S. District Court for the Central District of California.

UPDATE: On July 12, 2017, the SoulCycle gift certificate class action settlement is now open. Click here to file a claim.