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Gym Settles Membership Fee Dispute Class Action for $2.9 Million

Elizabeth DiNardo, Esq. | Associate Counsel

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On March 1, 2019, preliminary approval was granted for a $2.9 million settlement by U.S. District Judge for the Southern District of Ohio Western Division, in the Snap Fitness membership fees class action.

The suit was originally filed on May 25, 2017, by named plaintiff, Thomas Dwyer, and alleges that Snap Fitness improperly charged members a “club enhancement fee” in addition to the contractual membership fees. Plaintiffs argue that when initially signing up for club membership, they were never informed of any additional fees applicable to the maintenance or upgrade of club facilities.

The suit brought causes of action on behalf of the national class, for breach of contract, unjust enrichment and violation of the Ohio Consumer Sales Practices Act §1345.01 (which prohibits unfair or deceptive acts or practices in connection with a consumer transaction), as well as violation of the Ohio Prepaid Entertainment Contract Act (“PECA”) § 1345.41 to 1345.50 on behalf of the Ohio sub-class members.

Upon final approval, the $2.9 million settlement will be divided among 141, 000 class members. According to the proposed settlement agreement each class member in the PECA sub-class will receive a cash award of $5.00 and all other class members will receive a cash payment determined by a designated percentage of the club-enhancement fees that they paid.

The case is: Dwyer v. Snap Fitness, Inc., Case No.: 1:17-cv-00455, in the U.S. District Court for the Southern District of Ohio.

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