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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 this lawsuit as well. The same thing is happening to me. I have always called to let them know that I wasn’t able to attend my sessions due to surgeries and they kept telling me that they would only give me a few months to finish all my sessions, which means that I would had to go to a session everyday to finish them all. It must be nice when you collect the money upfront but can’t accommodate anyone thereafter. As of 09.21.21 I had so many sessions to be used and I was getting ready for a major surgery. But they didn’t care. How is that possible???? This is highway robbery that they think they can get away with taking peoples money and not making special accommodations for anyone. I’m in the military and my work schedule is such that when I am needed I need or have orders I need to leave. How am I suppose to schedule massages or anything for that matter when I am away or recovering from major surgery???? Please someone help us all. This is shouldn’t be happening to any of us. Refund our money because at this point I do not want to go back to them. If they weren’t able to work with me thus far, why should I continue to work with them. And having our rates increase….come on seriously!!! Ridiculous. This company needs to be penalized for all that they do to consumers. Thank you for your time and I look forward in hearing from someone really soon!!!
Please add me. I don’t know how to get out of this mess without cancelling my membership and losing thousands of dollars. I have a LOT of pre-paid monthly massage fees. I’m not even sure how many. It’s probably 40 or 50 that have been paid and unused. Pre-pandemic, I had to cancel massages planned for myself, daughter and sister because my mom was placed in hospice and I had to leave the state to go care for her. A few months later, had to go back to my mom’s estate to help my stepdad. Both periods in 2019 where I was in town, nothing was ever available. Then COVID came. They raised my rates and continued charging. Still can’t get in unless you schedule way out but my work schedule often doesn’t allow for that. At this rate, I’d like to cancel and either get all of my money back or be given something in writing that says I, or anyone I gift them to, can use what I’ve paid for indefinitely.
I am located in Northern Virginia.
I would definitely like to be added to this lawsuit. I never actually gave them permission to restart my membership after the pandemic. They automatically did and I have over 20 massages that I can not use bc they never have good therapists available in Las Vegas or LA. They ONLY allow you to transfer 1 a month to others which I was NEVER told. I don’t know how Massage Envy is allowed to continue with such fraud but they need to refund everyone their money. Then today I saw a pending charge from the Vegas one for a random charge that I never authorized for $120. These SCAMS need to stop
I woud definitely like to be added to this lawsuit. I never actually gave them permission to restart my membership after the pandemic. They automatically did and I have over 20 massages that I can not use bc they never have good therapists available in Las Vegas or LA. They ONLY allow you to transfer 1 a month to others which I was NEVER told. I don’t know how Massage Envy is allowed to continue with such fraud but they need to refund everyone their money.
Yes my membership also went up $10 .. I didn’t even receive a notice. I also have not been able to book an appointment since the pandemic. I can get an appointment at other locations that are weeks out and only during work hours but have to pay a fee. I was also told I could go to any other location at no extra charge. They also continued to charge my card monthly even though all locations were closed! I have not been able to get a hold of anyone at the location I purchased my membership from when I try to message online it tells me to stop by the location which is very inconvenient. I am paying $70 a month since 2019 and I can count on one hand the amount of massages I have been able to book.. Absolutely ridiculous..
Please add me to the lawsuit my price went up $10 Per month. One reason I chose them snd the membership deal was because I was told my price would be locked. I have referred many many clients over the years. No more no more gift cards.
I also have been a member and unable to cancel due to losing all my unused massages probably close to 50 sessions. I have to book a month out at my massage envy so I started using another facility and they increased their fees and I had to pay extra for the massage and facial when I used this facility. I was also told my fees would not change but they have increased over the years. Also, with the pandemic, unable to use any facilities but still charged monthly fees. If you put your account on hold for 3 months, you are not allowed to use any sessions, it is a lose lose all around.
Please please add me to this Lawsuit too. I signed up because there was a Massage Envy close to my home but it has been closed in a couple of months after I signed up. There are a couple of them about 8 to 10 miles away from my home but I hardly get any appointments with them when I call. I have to book in advance like a couple of months ahead. But I hardly keep track of those appointments and by the time I get the appointment date, sometimes I end up having a more prioritized work and miss/cancel the appointments. I have over 26 prepaid massage credits and don’t know how to use them all without piling up more on top every month. If I cancel my membership, ridiculously I have only two months to use all my credits, that means literally I have to go lay down there every alternate day(but on top there are no appointments available for next couple of months anywhere). Not sure how it is possible. If I freeze the account, I can’t use any sessions. I was promised that I will get appointments quickly if I take membership and rate is locked-in. Even during Covid time, when they couldn’t even serve, they kept my monthly charges going. It seems there is no way to get out of this Contract without losing all our hard-earned money.
Didn’t actually realize the rate went up; good to know. My nearby location changed so I’m now spending $30-50 in Ubers to get to/from every massage. I have over 60 credits… nearly $2500. Can’t get an appt. Ugh.
Agreed. I kept the membership because I was told the rates won’t increase.