Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
Massage Envy Membership Fees Class Action Lawsuit Overview:
- Who: Baerbel McKinney-Drobnis filed a class action lawsuit against Massage Envy Franchising, LLC.
- Why: Plaintiff alleges Massage Envy increased “locked-in” fees for monthly massages.
- Where: The class action lawsuit was filed in California federal court.
Massage Envy saw a $10 million class action settlement that offered Class Member vouchers tossed over unfair attorney fees.
A three-judge appellate panel determined the US District Court for the Northern District of California erred when finding that vouchers were not coupons under the Class Action Fairness Act, which affects the way a class counsel’s attorney fees are calculated, according to a recent opinion issued by the Ninth Circuit Court of Appeals.
The verified vouchers requested by 105,693 Class Members in the Massage Envy class action settlement amounted to less than $3 million in value—less than the $10 million floor of the deal, with the vouchers ranging in value from $36.28 to $180.68, the opinion states.
However, the judge calculated class counsel’s fees by adding the $10 million face value of the vouchers with the expected $450,000 in administrative costs to award 25 percent, or $2.6 million, to the attorneys.
“The appellate panel determined that the district court erred when it approved the settlement as ‘fair, reasonable and adequate’… [when determining] whether class counsel allowed the pursuit of their own interests to infect the settlement negotiations,” the opinion states.
The panel vacated the district court’s approval of the attorney fees award and instructed the lower court to use the voucher’s actual value at the time of redemption when determining fees.
“When a settlement provides non-cash relief and a reverter provision, a district court must be on the alert for an attorneys’ fee award that is artificially inflated in relation to the relief provided to the class,” the panel wrote. “The more undesirable or inflexible a voucher is in comparison to cash or to a gift card, the greater the risk that the settlement value may be overinflated.”
Massage Envy Class Action Claimed Co Hiked Monthly Membership Rates
The plaintiffs claimed that Massage Envy required customers to prepay for massages—forfeiting massages for which they have already paid if they cancelled.
The Massage Envy class action lawsuit alleged that customers were told that they could “lock in” membership rates, and that their monthly rate would not change. Additionally, they were told that they could cancel their memberships.
However, the company raised the membership rates. Customers claimed that in some cases, the rate hike was only 99 cents, but in other cases, the membership rates went up by around 30 percent. Additionally, customers claimed that the company intentionally maked it hard for customers to cancel memberships.
Top Class Actions will stay on top of this and other developments in class action settlements! Sign up for the free TCA newsletter to stay informed!
The plaintiffs are represented by Trenton R. Kashima of Sommers Schwartz PC and Jeffrey R. Krinsk of Finkelstein & Krinsk LLP.
The Massage Envy Membership Rate Hike Class Action Lawsuit is Baerbel McKinney-Drobnis et al. v. Massage Envy Franchising LLC, case number 20-15539, in the U.S. Court of Appeals for the Ninth Circuit.
Don’t Miss Out!
Check out our list of Class Action Lawsuits and Class Action Settlements you may qualify to join!
Read About More Class Action Lawsuits & Class Action Settlements:
- Farmers Insurance Violates Insurance Policies by Refusing To Pay Fees, Class Action Alleges
- Bank of America Cardholders Seek Class Certification in ‘Tricky’ ATM Fee Class Action Lawsuit
- PNC Mortgage Fees $662K Class Action Settlement
- UnitedHealthcare Liposuction Claims ‘Cosmetic’ Class Action Settlement Tossed for ‘Red Flag’
105 thoughts on$10M Massage Envy Class Action Settlement Tossed for Fees
Please add me as well.
I joined ME and have my contract which says 49.99 per month and they just informed me by email I would be “I grandfathered” and my rate would be increased to 65.00 per
Month.
Please add me to your class action lawsuit. I canceled my membership after them making it more difficult for me to get scheduled to have a massage. In doing so they told me I Had almost $3000 worth of massages banked up that I could use and transfer to other people. Upon arriving at the store to attempt to use my final massages and transfer the massages, they informed me that they had closed my membership before I could use anything and I was uneligible to complete my massages or transfer them to anyone else as they had advised.
Please add me to this class action suit
Please add me to this class action suit.
Please add me to this class action lawsuit.
Please add me to the class action lawsuite
I want to be added to the class action lawsuit too
Is there a class action for massage envy members Who is appointments have been canceled last minute over and over and over and at the same time they keep charging you monthly for services you are not even getting?
Please add me to this class action lawsuit. I signed up when Massage Envy opened in Florham Park, NJ at a $49 rate. They ignored all contract language and refused to honor my original contract. Recently, they hiked it up again and I only found out after I had my monthly massage. No notifications were sent to me.
How can I be added to the class action suit?
Add me please
Add me