Vaughn v. LA Fitness Settlement
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Frequently Asked Questions

Please find below answers to frequently asked questions
  1. What is this lawsuit about?
  2. Why is this a class action?
  3. Why is there a settlement?
  4. How do I know if I am part of the settlement?
  5. Are there exceptions to being included in the Class?
  6. What does the settlement provide?
  7. How can I get the 45 Day-Club Access Pass?
  8. I am a Member of Subclass "A", how do I submit a claim for a cash payment?
  9. I am a Member of Subclass "B", how do I submit a claim for the Subclass "B" benefits.
  10. When will I receive my payment?
  11. What am I giving up if I stay in this Class Action?
  12. How do I exclude myself from the Settlement?
  13. Do I have a lawyer in this case?
  14. How do I tell the Court that I do not like the Settlement?
  15. What is the difference between objecting and requesting exclusion?
  16. When and where will the Court decide whether to approve the settlement?
  17. What happens if I do nothing at all?
  18. How do I obtain more information about the Settlement?
  1. What is this lawsuit about?

    The lawsuit claims that LA Fitness breached its contracts by failing to timely process its customers' requests to cancel their Monthly Dues Membership Agreements and that LA Fitness' Monthly Dues Membership Agreements violated state laws by including unfair, confusing or misleading language concerning the amount of advance notice a customer must provide to LA Fitness in order to cancel a membership with no further charges and for the customer to get the benefit of his or her prepaid last month's dues. The lawsuit also challenges the terms, policies and contract forms used for the Monthly Dues Membership. The lawsuit claims that, as a result of these breaches and violations, Class Members were damaged.

    LA Fitness does not believe it has done anything wrong, and it believes that it would ultimately prevail in this lawsuit. However, in order to avoid the costs and risks associated with any litigation, LA Fitness has agreed to the terms of this Settlement in order to reach a final and amicable resolution of these claims.

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  2. Why is this a class action?

    In a class action, one or more persons called Class Representatives sue on behalf of all persons who have similar claims. All of these persons are referred to as a Class, or individually, as Class Members. One court resolves all of the issues for all Class Members, except for those Class Members who exclude themselves from the Class.

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  3. Why is there a settlement?

    The Settlement allows both sides to avoid the risks and costs of lengthy and uncertain litigation and the uncertainty of a trial and appeals, and permits Class Members to be compensated without further delay.

    Plaintiffs have agreed to settle the lawsuit based on the facts they have discovered during the litigation, the risks that will be involved in a trial, and their conclusions that the proposed Settlement is fair, reasonable and adequate, and serves the best interests of the Class Members. Plaintiffs have determined that by settling, they avoid the cost and risks of a trial, while at the same time providing substantial compensation to the Settlement Classes. Plaintiffs and Plaintiffs' Counsel believe that the Settlement is best for all Class Members.

    LA Fitness does not believe it has done anything wrong, and it believes that it would ultimately prevail in this lawsuit. However, in order to avoid the costs and risks associated with any litigation, LA Fitness has agreed to the terms of this Settlement in order to reach a final and amicable resolution of these claims.

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  4. How do I know if I am part of the settlement?

    The Settlement Class consists of all Individuals who cancelled their Monthly Dues Membership Agreement with LA Fitness during the Class Period of May 18, 2006 to January 1, 2013. The Settlement Class excludes persons who entered into a Monthly Dues Membership Agreement in California. The Settlement Class also excludes the members of the New Jersey Class Action Settlement as defined below in question 5. If you are a member of the Settlement Class, you may also be a member of Subclass A and/or Subclass B. The basis for membership in the Subclasses is described below in Question 6.

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  5. Are there exceptions to being included in the Class?

    Yes. Persons who entered into a Monthly Dues Membership Agreement in California or who are members of the New Jersey Class Action Settlement are excluded from the Settlement Class. The New Jersey Class Action Settlement includes individuals who entered into a Monthly Dues Membership Agreement in New Jersey and is titled Sophia Martina v. L.A. Fitness International, LLC, No. 2:12-cv-02063-WHW-MCA. Information about that settlement can be found at www.NJGymSettlement.com.

    Also excluded from the Settlement Class are those persons who timely and validly request exclusion from the Settlement Class.

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  6. What does the settlement provide?

    For All Settlement Class Members:

    LA Fitness has agreed to provide all members of the Settlement Class a fully transferable 45-Day Club Access Pass (which has a monetary value of $45). The 45-Day Club Access Pass will entitle the Class Member, or any other individual to whom the Class Member transfers the pass before it is first used, to access LA Fitness' health club facilities for a period of 45 consecutive days as if the bearer of the pass were a member, and without the payment of any dues. The bearer of the pass will not be required to enter into any contractual agreement requiring the payment of dues or the provision of a credit card or bank account number, but will be required to sign off on the standard membership terms, which include a waiver of liability required for guests who utilize the health club facilities. The 45-Day Club Access Pass will be subject to the same time restrictions for club usage as any other club member, and shall be valid at any of LA Fitness' current locations, except at Signature Club locations. The 45-day period must be activated by the bearer at an LA Fitness Club location prior to one year of the issuance of the Class Notice, or such date as is set by Court order; passes not activated within that time shall be void.

    The 45-Day Club Access Pass may not be used for payment of dues owed under a past, current, or future membership agreement with LA Fitness and may not be advertised for resale.

    LA Fitness has also agreed to revise its Monthly Dues Membership Agreement to clearly state that any form of written notice of cancellation is permitted and that the notice should include sufficient information to identify the member. The Monthly Dues Membership Agreement will recommend that the written notice of cancellation should include the member's name, barcode number, address, telephone number and email address.

    For Members of Subclass A

    If you meet the following definition, you are a member of Subclass A and may be entitled to the benefits described in this section.

    Subclass A consists of: All Settlement Class Members: (a) who entered into a Monthly Dues Membership Agreement with LA Fitness in any state other than California, Pennsylvania or New Jersey during the Subclass "A" Period for their respective state, and (b) who paid for an additional month of dues via an Electronic Fund Transfer or Credit Card charge (not including the application of prepaid last month dues) after LA Fitness received and processed a Notice of Cancellation; and (c) this payment of an additional month of dues was not subsequently refunded.

    The Subclass A Period for each state is:

    Florida: March 4, 2007 to January 1, 2013;
    Washington: October 12, 2007 to January 1, 2013;
    Texas: October 17, 2010 to January 1, 2013;
    Michigan and Minnesota: January 1, 2007 to January 1, 2013;
    Massachusetts: January 1, 2009 to January 1, 2013;
    Connecticut, District of Columbia; Illinois, Maryland, New York, and Wisconsin: January 1, 2010 to January 1, 2013;
    Georgia, Indiana, Kentucky, Ohio, and Virginia: January 1, 2011 to January 1, 2013;
    Arizona and Oregon: January 1, 2012 to January 1, 2013.

    LA Fitness has agreed that Subclass A Members may elect to receive cash payment equal to 1/3 of the additional one month of dues they paid (via an EFT or CC charge) after LA Fitness received such Class Member's written notice of cancellation if that payment was not subsequently refunded. Members of Subclass A have the option to choose either this cash payment or the 45-Day Access Pass mentioned above.

    For Members of Subclass B

    If you meet the following definition, you are a member of Subclass B and may be entitled to the benefits described in this section.

    Subclass B consists of: All Settlement Class Members: (a) who cancelled their Monthly Dues Membership Agreement with LA Fitness and (b) who claim that LA Fitness did not timely process their Notice of Cancellation resulting in additional charges for Monthly Dues that were not subsequently refunded.

    LA Fitness has agreed that Members of Subclass B may submit a Claim and elect to receive the following:

    • Written Proof of Mailing: All members of Subclass B who mailed a cancellation notice to LA Fitness that was sent via certified mail or other form of mailing that provides written proof of mailing shall, upon submission of a Claim Form with proof of mailing (such as a certified or registered mail receipt signed by an LA Fitness agent, or a FedEx, DHL, USPS or UPS tracking number that indicates such receipt), be entitled to receive a monetary payment equivalent to 100% of all dues paid and collected after the date of mailing of the cancellation notice for up to one year after the mailing, less any refunds already provided.

    • Written Proof of the Printing of a Cancellation Form and Notification to LA Fitness : All members of Subclass B who:

      Printed a Notice of Cancellation form from LA Fitness' website OR Obtained a Notice of Cancellation form at an LA Fitness club location.

      AND


      Paid for monthly dues more than 60 days after the date the Notice of Cancellation form was printed or obtained by the member.

      AND


      Notified LA Fitness that their cancellation was not processed (such notification could have been made directly to LA Fitness or to a third party governmental or consumer agency such as the Better Business Bureau).

      AND


      Did not use LA Fitness facilities more than 60 days after printing or obtaining a Notice of Cancellation.

      Shall, upon submission of a Claim Form and verification of the customer's records or consumer agency records, be entitled to receive a monetary payment equivalent to fifty percent (50%) of all dues paid and collected more than sixty (60) days after the date of the printing of the Notice of Cancellation form for up to one year after the printing (not including the application of pre-paid last month dues), less any refunds already provided.

      If LA Fitness does not possess the customers' complaint in its records; then the Claims Administrator will notify the customer and request that the customer provide written proof of the complaint.

    • No Recorded Proof: All other members of Subclass B who submit a Claim Form verifying that they mailed a cancellation that was not processed will receive a fully transferable 60-Day Club Access Pass (which has a monetary value $60) instead of the 45-Day Club Access Pass. Such members will receive a special identification number from the Claims Administrator that they can use to sign up for the 60-Day Club Access Pass. Aside from the duration of the 60-Day Club Access Pass, the 60-Day Club Access Pass has the same terms as the 45-Day Club Access Pass. You cannot receive the 60-Day Club Access Pass if you have already signed up for the 45-Day Club Access Pass.

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  7. How can I get the 45 Day-Club Access Pass?

    Settlement Class Members will be e-mailed or mailed a summary notice on May 11, 2013 which includes a 6 digit Access Code along with a 7 digit Claim ID. If you are a Settlement Class Member as defined in question 4 above and you have not received this notice, you may also obtain your Access Code by contacting the Claims Administrator.

    The Access Code and Claim ID enables Settlement Class Members to submit a claim and sign up for the 45-Day Club Access Pass. Settlement Class Members may transfer the Access Code to another person so they can sign up for the 45-Day Club Access Pass, but then the Settlement Class Member will not be able to use the pass.

    In order to sign up for the 45-Day Club Access Pass, click here to enter your Access Code and Claim ID. You will then be given the option to sign up for the "45-Day Club Access Pass." After clicking on that link, you will then be required to fill out a form signing up for the 45-Day Club Access Pass. You will then have access to any LA Fitness club location, other than Signature Clubs, for 45 consecutive days thereafter.

    Claims for the 45-Day Club Access Pass must be submitted by May 11, 2014 (one year after Notice).

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  8. I am a Member of Subclass "A", how do I submit a claim for a cash payment?

    The Summary Notice that was e-mailed or mailed to Settlement Class Members indicates if the Settlement Class Member is a member of Subclass "A" and the cash payment which they are eligible to receive instead of the 45-Day Club Access Pass. The top of the Summary Notice will contain the Access Code and Claim ID. If you are a Settlement Class Member as defined in question 4 above and you have not received this notice, you may also obtain your Access Code by contacting the Claims Administrator.

    If you are a Settlement Class Member and wish to submit a claim for the cash payment instead of the 45-Day Club Access Pass, click here to enter your Access Code and Claim ID. If you are a member of Subclass "A" then you will be given the option of either signing up for the 45-Day Club Access Pass or selecting cash payment. If you wish to submit a claim for the cash payment instead of the 45-Day Club Access Pass, then click on the link for cash payment and provide the requested information. If you select this option, you will not be able to use the 45-Day Club Access Pass.

    The Claims Administrator will mail you the check for the cash payment, but this may take some time (as described in paragraph 12 below), so please be patient.

    Claims for the Subclass "A" cash payment must be submitted by August 9, 2013.

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  9. I am a Member of Subclass "B", how do I submit a claim for the Subclass "B" benefits.

    If you believe you are a member of Subclass "B" and wish to submit a claim for one of the applicable benefits click here to enter your Access Code and Claim ID. You will then be given the option of selecting your applicable benefit. You will be provided with the opportunity to submit any applicable documentation electronically. You may also mail any applicable documentation (being sure to reference your Claim ID and Access Code) to:

    U.S. Gym Settlement, Claims Administrator
    c/o Gilardi & Co., LLC
    P.O. Box 808003
    Petaluma CA 94975-8003


    The Claims Administrator will process your claim and advise you if you are an "Authorized Claimant" - meaning that your claim satisfies the requirements approved by the Court.

    Claims for the Subclass "B" benefit must be submitted by August 9, 2013.

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  10. When will I receive my payment?

    The Court will hold a hearing on September 19, 2013, to decide whether to approve the Settlement. If the Court approves the Settlement, one or more Class Members could file an appeal. If there is an appeal, it is always uncertain when or if such appeals will be resolved favorably for the Settlement. Resolving an appeal can take time, perhaps more than a year. It also takes time for all the Claim Forms to be processed. If there are no appeals, and depending on the number of claims submitted, the Settlement Administrator could distribute payments as early as one year after the Settlement Hearing. You may track the progress of the Settlement by visiting this Website. Please be patient.

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  11. What am I giving up if I stay in this Class Action?

    If you are a member of the Settlement Class and you do not exclude yourself, you cannot sue, continue to sue, or be part of any other lawsuit against LA Fitness about the matters at issue and the claims that were or could have been raised in the lawsuit. If the Settlement is approved, you will be deemed to have released all "Released Claims" set forth below in exchange for the benefits of this Settlement.

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  12. How do I exclude myself from the Settlement?

    To exclude yourself from the Settlement, you must send a letter by mail stating that you want to be excluded from this Settlement. Be sure to include your name, address, telephone number, your Access Code and Claim ID which are listed on the top of the Summary Notice that was e-mailed or mailed to you and your signature.

    Exclusion requests must be mailed so that they are postmarked no later than August 9, 2013.to:

    U.S. Gym Settlement, Claims Administrator
    c/o Gilardi & Co., LLC
    P.O. Box 8090
    San Rafael CA 94912-8090


    You cannot exclude yourself by phone or by e mail. If you exclude yourself, you will not receive any of the benefits in this Settlement, but will retain your right to sue LA Fitness over the issues addressed by this lawsuit.

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  13. Do I have a lawyer in this case?

    The Court has approved Plaintiffs' selection of Berger & Montague, P.C. to serve as Plaintiffs' Counsel for Plaintiffs and the other Class Members. Settlement Class Members will not be charged for these lawyers' work. If you want to be represented by your own lawyer, you may hire one at your own expense.

    After reaching the core terms of the Settlement on behalf of Plaintiffs and the Class, Plaintiffs' Counsel and LA Fitness separately negotiated for LA Fitness to pay Plaintiffs' Counsel $1.4 million for Plaintiffs' Counsel's attorneys' fees and expenses. The payment of attorneys' fees will not affect Settlement Class Members' benefits in any way

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  14. How do I tell the Court that I do not like the Settlement?

    If you are a member of the Settlement Class (and you have not excluded yourself), you can object to the proposed Settlement if you do not like any part of it, the request for attorneys' fees and reimbursement of expenses, or the Plaintiffs' request for Incentive Payments. You may state why you think the Court should not approve the Settlement. The Court will consider your views. Your Objection must be in writing and include:

    • Statement of each objection being made;

    • Description of the facts and legal basis for each objection;

    • Statement of whether the objector intends to appear at the Fairness Hearing;

    • List of witnesses whom the objector may call by live testimony, oral deposition testimony or affidavit during the Fairness Hearing; and

    • List of exhibits which the objector may offer during the Fairness Hearing, along with copies of all of the exhibits.


    Objections must be mailed so that they are postmarked no later than August 9, 2013 to :

    U.S. Gym Settlement, Claims Administrator
    c/o Gilardi & Co., LLC
    P.O. Box 8090
    San Rafael CA 94912-8090


    Objections must include the name, address, telephone number, Access Code and Claim ID of the Settlement Class Member along with the Settlement Class Member's original signature (no copies) and should also be mailed to:

    The Court
    Clerk of the Court
    United States District Court
    Eastern District of Pennsylvania
    601 Market Street, Room 2609
    Philadelphia, PA 19106

    Lead Counsel
    Sherrie R. Savett,
    Berger & Montague, P.C.
    1622 Locust Street
    Philadelphia., PA, 19103
    Telephone: 800-424-6690

    Defendant's Counsel
    Jason M. Frank, Esq.
    Eagan Aevnatti, LLP
    450 Newport Center Drive, Second Floor
    Newport Beach, CA 92660

    Settlement Class Members may object either on their own or through an attorney that they hire at their own expense. If you do hire an attorney to represent you, your attorney must file a notice of appearance with the Clerk of the Court and deliver a copy of that notice to Plaintiffs' Counsel and Defendant's counsel no later than August 9, 2013.

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  15. What is the difference between objecting and requesting exclusion?

    Objecting is simply telling the Court that you do not like something about the Settlement. You can object to the Settlement only if you stay in the Settlement Class. Excluding yourself is telling the Court that you do not want to be part of the Settlement Class. If you exclude yourself, you have no basis to object because the case no longer applies to you.

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  16. When and where will the Court decide whether to approve the settlement?

    The Court will hold a Fairness Hearing at 1:30 p.m. on September 19, 2013, at the United States District Court for the Eastern District of Pennsylvania, 601 Market Street, Courtroom 3A, Philadelphia, PA 19106. At this hearing the Court will consider whether the Settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them. The Honorable Michael M. Baylson will listen to Class Members (or their counsel) who have submitted written objections and written indication(s) of their intention to speak at the hearing, as long as they are filed with the Court and served on Plaintiffs' Counsel and Defendant's Counsel and are postmarked no later than August 9, 2013. The Court may also decide whether to approve the payment of fees, costs and expenses to Plaintiffs' Counsel and the payment of Incentive Payments to Plaintiffs. We do not know how long the hearing will take or whether the Court will make its decision about the Settlement on that day or sometime later.

    Settlement Class Members are not required to attend the hearing but may do so at their own expense. If you object to the Settlement, you may ask the Court for permission to speak at the hearing. To do so, you must include with your objection (see response to question 14) a statement saying that it is your "Notice of Intention to Appear in Vaughn v. L.A. Fitness International, LLC, No. 10-cv-2326-MMB." Persons who intend to object to any part of the Settlement and wish to present evidence at the hearing must also include in their written objection the identity of any witnesses they may call to testify and exhibits they intend to introduce into evidence at the hearing.

    You cannot speak at the hearing if you exclude yourself.

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  17. What happens if I do nothing at all?

    If you are a Settlement Class Member and you do nothing, you will not receive the 45-Day Club Access Pass or any payments from this Settlement. However, unless you exclude yourself, you will not be able to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit against the Defendant concerning the Released Claims in this case ever again.

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  18. How do I obtain more information about the Settlement?

    This Notice summarizes the proposed Settlement. More details are in a stipulated settlement agreement, which has been filed with the Court. You can inspect a copy of the stipulation at the office of the Clerk of the Court, United States District Court for the Eastern District of Pennsylvania, 601 Market Street, Room 2609, Philadelphia, PA 19106 during regular business hours or by clicking here.

    For additional detailed information concerning the matters involved in this lawsuit, you may inspect the pleadings, the orders of the Court, and other papers filed in this lawsuit at the office of the Clerk of the Court, United States District Court for the Eastern District of Pennsylvania, 601 Market Street, Room 2609, Philadelphia, PA 19106, during regular business hours. You can also contact the Claims Administrator or Plaintiffs' Counsel. Please do not call the Court or the Clerk of the Court for additional information about the Settlement.

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