The Franchise Memorandum - Issue #271

Lathrop GPM

Ninth Circuit Reverses Class Action Settlement Approval and Fee Award -

The Ninth Circuit Court of Appeals has reversed the approval of a $10 million voucher settlement and a $2.6 million attorneys’ fee award in a class action over increased membership fees charged by Massage Envy franchises. McKinney-Drobnis v. Oreshack, --- F.4th ---, 2021 WL 4890277 (9th Cir. Oct. 20, 2021). The plaintiffs claimed the franchisor of the Massage Envy franchise system told customers their Massage Envy membership rates would not change after they signed up, and that they could cancel their memberships at any time. However, the company allegedly raised membership rates and intentionally made it hard for customers to cancel their memberships. The parties reached a settlement before a class was certified. Under the settlement, in exchange for the release of all claims against Massage Envy, class members could submit claims for vouchers for Massage Envy products and services. The trial court approved the settlement over the challenge of one objector, who appealed.

Please see full Newsletter below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Lathrop GPM | Attorney Advertising

Written by:

Lathrop GPM

Lathrop GPM on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.