San Francisco, CA: (Jul-31-07) A class action lawsuit was brought against 24 Hour Fitness USA Inc. by 1.8 million current and former California members, alleging that the health club's contract rules violated California law. The Health Studios Act provides that a gym can't require payments beyond the terms of a contract. Plaintiffs alleged 24 Hour Fitness continued to collect fees one or two months after some monthly members canceled. Though the San Ramon-based company decided to settle the suit, it was to avoid the costs of litigation rather than an admission of wrongdoing. Both the plaintiffs' lawyer and 24 Hour Fitness said it was difficult to provide a dollar figure to the settlement because there are several variables. Former members get refunds based on a percentage scale depending on contract they had and when they signed up.
Under the settlement approved by the San Francisco Superior Court, class members are entitled to choose settlement benefits, depending on their situation, including partial refunds, free personal training or membership upgrades, contract modifications and transferable 30 and 45 day Club Access Passes. [SAN FRANCISCO BUSINESS JOURNAL: 24 HOUR FITNESS SETTLEMENT]
