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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
Same here in Kansas. Charged all of covid but couldn’t go in then it’s near impossible to get a massage therapist to book with.
I would love to be added to this if that’s possible.
Same here in Kansas. Charged all of covid but couldn’t go in then it’s near impossible to get a massage therapist to book with.
I would love to be added to this if that’s possible.
i have been a member since 2009, i had to have this service to continue to work. my locked in membership has gone up several times. i have since moved to another state and the nearest office is 3 hours away. i have over 60 PAID visits i cannot use. the reasons for not being able to use them is they make me book weeks in advance and i have tried 2 different offices, the last person complained about being “non essential” and tossed my limbs around the whole hour like i was a rag doll….and never stopped complaining the entire time. i wanted to cancel many times in the last 5 years however i would get a 6 month defer which would only last 4 months and the last one never even went into effect. This is now over $4000 they have collected from me, now if i owed them i would be in court for theft of services. Now fuel in this area is $1.20 to $2.00 above the rest of the US in this area. i know this cause i just had to drive across the US. Gas was $3.69 which is still pathetic, yet most of the state i am in is $4.59. However the price gouging town i am closest to is $5.86. Point being, i can’t afford to even waste money to go for such a luxury at this point even if i could get an appointment scheduled. i definitely have gone from praise to feeling like this is now a scam that i cannot afford. we need to reissue a new lawsuit.
Please add me to this lawsuit. In addition to not being notified of rake increases each year and having one massage envy near my home close and the other not returning calls to book massages we are at a loss. I have over 20 prepaid massages and no one to service them. This seems like unfair booking of revenue (GAAP ) accounting principles and policies when services can not be rendered, yet my monthly charge continues to be charged and their is no way to get out of the contract without forfeiting prepaid services
I’ll add on top of my comments above that in my over 7 years as a member, whenever I go into a massage envy the rooms are all open and not being used. It’s a ghost town, yet when you go to book you can’t get appointments. This has happened in multiple locations. So they sell and collect monthly fees under a corporate brand and sell and collect for services they have capacity for , but no one to service their existing members in their franchise locations , including those that have closed. How is this legal?? And how can we get out with unused but paid for services? You can’t charge and then not be able to deliver services. Lawsuits are way overdue to this corrupt corporate franchise.
150% truth. I’ve experienced the same in every aspect, with the exception that I have a couple nearby but you literally have to book at minimum a month out at any given location.
I never received any notice the monthly rate was going up this year. I in the past wanted to cancel but was told my paid for massages would not be assessable. I thought how desperate can you be to in a way force a customer to stay a customer. If you pay for your services then you should be given them. Now they have a Tippy service that you have to use to tip the therapist- it charges you a Convenience fee. So bring cash –
Please add me
Please add me
Please add me.
Please add me as well as my husband to the lawsuit. Ridiculous!
How can I be added to this law suit? I have been trying for months to get out of my contract. The Manager keeps telling me I can not get out. A front desk staff told me about a 6 months freeze but the Manager said it would just push my cancelation date back. It’s literally impossible to get out of this contract. They are not properly and clearly explaining this contract. They say you can cancel at any time but it’s not true… I keep calling for appointments and I can not get appointments with the people that caters to what my body needs… I am just tired and fed up of this royal run around. I literally just got off the phone with the manager at the Stockton ca location…No help. I told her I will call the corporate office and I will get a lawyer to look over my contract. She keeps trying to get me to try new massage therapist and I told her no. I am not happy with the service and I want out.