Facts

Consumers filed a class action against SoulCycle Inc. Plaintiffs purchased redeemable certificates from the indoor cycling fitness center. The certificates were redeemable for fitness classes and exercise sessions. The certificates expired after a certain date.

PLAINTIFFS' CONTENTIONS: The plaintiffs alleged that the defendants violated and/or were liable for the Credit Card Accountability and Disclosure Act, the Electronic Funds Transfer Act, state gift certificate statutes, unfair competition law, the Consumer Legal Remedies Act, unjust enrichment, and breach of the implied covenant of good faith and fair dealing. The plaintiffs argued that the certificates expired too soon to redeem, and that customers lost money as a result.

DEFENDANTS' CONTENTIONS: SoulCycle argued that the certificates were not gift certificates or gift cards, but passes to specific classes, which could expire.

Settlement Discussions

Two mediations occurred.

Result

The parties settled. Under the settlement's terms, each class member could receive a reinstated class, or alternatively, up to $25 each. The agreement estimated the total settlement value to total between $6.9 to $9.2 million. SoulCycle also agreed to amend its terms and conditions, and business practices, for clarity. Plaintiff was also awarded $1.79 million in attorney fees.