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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.
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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.
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105 thoughts on$10M Massage Envy Class Action Settlement Tossed for Fees
Please add me as well. I was supposed to be “frozen.” When I called to book a massage they told me my account was not frozen and I needed to pay for the months I had missed a payment for, which was over 6 months, I have the email where the manager states he was freezing my account for me and went ahead and charged my card.
Since starting my membership they were always behind a month when charging me/they never charged me on time and blamed me for that, telling me it was my fault or my credit cards fault. They are the only place that has an issue or doesn’t bill on time-yet when I tell them to go ahead and process the payment it goes through right then and there.
They told me one price for the membership $55 and it was actually $65; more than what they stated. The receptionist also told me I could use gift cards to pay for the membership monthly if I wanted to use that instead of a credit card one month, they just needed to have a card on file, but once I got there they could run the gift card. With that being said my mom got me gift cards for my bday or Christmas one year and I wanted to use it for a monthly payment they told me NO. I used a gift card for my 1st monthly payment, now I’m being told no and stuck with multiple gift cards.
My dilemma now is I have months I have to pay for, but I’m not going to as I was supposed to be frozen because the manager messed up. I have a ton of credits I can’t use because I have to pay for months as I’m not frozen to be able to use them. Now when I log into my account on the app it’s telling me I don’t even have a membership at all. I just want my money back that I paid into this, it’s been hundreds of dollars that I’ve been fraudulently scammed out of.
You can add me to this list. They did not cancel my membership and were billing me every month for three years.
Sign me up as well. They have taken thousands from me and won’t let me in fast enough to use, so I keep getting charged. I want to freeze my membership to use my 22 sessions but they won’t let me, help. This is wrong.
Please add me. Long story but I’d paid well over $1000 before I learned I had to pay $20 more per month to TRY to use that credit. Same experience as above, never availability or cancellation at the last minute.
Go to another Franchise or Spa .
Massage Envy not 5he best franchise too do biz with
I would also like to me added to the lawsuit, have been a member since 2014 and have also had my rate increased. It’s near impossible to find bookings within a week or even two weeks out and with my on call job it makes it even more difficult to use up my credits which is already around 40-50!! I want to cancel my membership at this point and never bother with them again! And don’t get me started on the pandemic, still charging everyone throughout its entirety! Criminal!
Please add me as well to the class action lawsuit. Our fees went up when we signed up 13 years ago we were told we had locked in rates. Seemed like massage envy did this to get new customers but decided to no longer honor the contract when it stopped being good for them. Is that how contracts work???
Please add me they are ripping me off.
Please add me.
I have documentation to back up the raise in fees and you cannot book an appointment or quit and use your “credits” because they do not have any openings. I tried to book at stretch today 5/13/22 and next available is 8/6/22. This can’t be legal
They are charging my credit card and when I try to get a massage they don’t have any available appointments for the rest of the month. I called May 7th and the rest of the month is booked.This is crazy. They shouldn’t be charging you and getting nothing back in return.
please add me
Please add me. They will not allow me to cancel
My membership while telling me that after 1 year if I have never used the massages given , if I have 12 to use I will have 60 days to use them or they will be taken away! None of this had been explained while offering the membership.
How to sign up for this lawsuit? Please add
Please add me to this lawsuit! I have 10 credits and cannot get massages in my area bc of closures from Covid. When I called to halt payments I was told I could not use my already paid for credits unless I pay an additional 30 dollar fee! If I cancel membership I lose credits with no refund! This is not in my contract and I had to cancel my credit card to stop them from taking fees out! How can they hold
E to a contract they change without my knowledge? How can they charge for services they cannot provide? This is criminal!
The reason they don’t have any appointments for you is because most of Northern Cali locations , don’t have very many therapists. Why ? Because as like your self they also screw their employees and abuse the Therapist so they quit ,leaving the members to suffer as well as the past employee . They restrict and block their therapist from working in any franchise after the therapists was laid off because they don’t want to pay the therapists correctly either .
Then they Lie Lie Lie too make everyone else suffer while they rack in top dollars from member and pay therapists as low as $17.00 a hour . Crazy but true …..
Add me to the lawsuit