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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 to the lawsuit as well, worst scam ever
Please add me to the lawsuit, we are all victims of this scheme where we pay a monthly fee, I can never get an appointment when I call so I’m paying for a membership that is just supporting a business for the past several years and cannot even use the service. I think this is by design to locking members and defraud them, I have several records of calls made to several locations looking for appointments to no avail. This business is shamelessly recruiting new customers as we speak! They deliberately trap you are not making it possible to cancel or convert the money they’ve taken from you into gift cards etc. it’s obviously a clever design but companies and businesses like this bring a bad name to franchisees.
Please add husband Bill and myself to this lawsuit. Price has gone up several times since our many years of membership. We have total of 35 paid massages to use but appointment availability is months out and only have 60 days to use accrued massages if we cancel. It’s a no win situation for us. I also found out from a previous therapist that they block out time on the therapist schedule for NEW clients only (forget about the members that paid and carried them thru the covid shutdown)!!! These blocked appointments are only offered to members is still open the day before the appointment. Unfair practices.
I have been trying to use my credits and am having the same problem.
Please add me to the law suit. I have 7 sessions to use and cannot get an appointment. Rates went up to 15 dollars more for additional sessions. I cannot get an appointment and still paying for membership. There is a high turn over of staff and massage therapist. I talked to the manager regarding the increase in monthly membership, additional sessions and gratuity. He told me there is nothing he can do. I been a member for over 4 years and have weekly sessions untill the increase. He told me there is nothing he can do. I asked to speak to the person above him and he said he is the boss and I cannot go above him because is a franchise location and he is it.
Please add me.. too much to type on reasoning of BS and frustration.
My wife and I have been members ever since the location in our city opened. We currently have >20 sessions available to us *however* we can’t seem to book a session due to unavailability. We’re not able to book monthly but we certainly get billed monthly. The store won’t let us book past 60 days so booking future visits to ensure that we get service is not an option. And there’s a charge (2/5 of session cost) to pause full billing however we can’t use any available sessions while the account is frozen. I don’t see how a business can bill you monthly without the availability of services within that same time period.
It’s time to take this to a higher legal authority. I either want the services for which I’ve already paid OR I want my money back (and I’ll stop paying in the future).
Been with this company for 5 or 6 years. Same problem. Constantly making it difficult to cancel memberships. Raised rates after marketing a “locked in” rate and have cancelled my massages multiple times due to “staffing issues” but still charge a monthly fee when there are no massages available. Please add me to class action lawsuit.
Please add me to the class action lawsuit!
I was finally able to camcel afyer the 3rd attempt but now have 21 massages to use in 90 days. They member have a opening and are always calling and camcelling due to staff shortages. My price has been incteased twice without my consent. What am I supposse to do? Please add me to the law suit. Thank you.