Facts

Arianna Rosales and Charlice Arnold filed a class action against FitFlop USA LLC on behalf of others similarly situated in connection with FitFlop's footwear. Plaintiffs sought monetary and injunctive relief.

PLAINTIFFS' CONTENTIONS:
FitFlop advertised its footwear to aid in the strengthening or toning of muscles, reducing joint strain, burning calories, or assist in weight loss, or otherwise provide relief from medical conditions. However, plaintiff contended that these claims were false and misleading advertising, causing consumers to pay a premium on the footwear. Plaintiff alleged causes of action for violations of California's Consumer Legal Remedies Act, California's Unfair Competition Law, and breach of express warranty.

DEFENDANT'S CONTENTIONS:
FitFlop disputed plaintiff's allegations and maintains its advertising was substantiated by research conducted by two leading British universities.

Result

Following mediation, FitFlop agreed to settle the dispute by providing $5.3 million in settlement funds. FitFlop also agreed to stop making the alleged false and deceptive certain representations unless it has competent and scientific evidence that supports its claims so that they are true and not misleading. FitFlop admitted no liability as part of the settlement.