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Class Action Settlements: 24 Hour Fitness

24 Hour Fitness, with headquarters in San Ramon, California, is one of the largest chains of fitness centers in the world with over 400 clubs worldwide and 20,000 U.S. employees. With three million members in the U.S., it has more members than its closest competitor, Bally's.

On February 7, 2005, a class action suit on behalf of California residents only was brought in San Francisco Superior Court against 24 Hour Fitness alleging unfair business practices that included continued collection of dues from members’ checking accounts and credit cards after they had terminated their memberships, and in its violation of statutory print size in its membership contracts.

A class action suit, entitled Friedman , et al. v. 24 Hour Fitness USA, Inc., with similar allegations regarding cancellation fees but filed on behalf of members in all states in which 24 Hour Fitness conducted business was filed in U.S. District Court for the Central District of California on October 2, 2006.

The California class action suit was settled on July 30, 2007 with terms that permitted class members to upgrade their memberships at reduced rates, provided free personal training, partial refunds, or a choice of transferable 30 and 45 day Club access passes. There was no monetary amount placed on the settlement.
The Friedman class action suit was settled in March 2010. It provided a cash payment of $20 to any class member or a three-month Club access certificate for use at any 24 Hour Fitness Club for three consecutive months.

In the Fall of 2008, a class action suit entitled McCardle, et al. v. 24 Hour Fitness USA, Inc., et al. was brought in California’s Alameda County Superior Court on behalf of 458,000 current and former members of 24 Hour Fitness, alleging that in some of its 24 Hour Fitness membership contracts, the company had provisions for access to all of its various clubs including its elite clubs that supposedly provided for more amenities than its lower level ones.

After the company built new Super Sport Clubs, it denied these members access and required that they upgrade and pay increased dues if they wanted to use these clubs. Furthermore, there were complaints that these super clubs failed to offer the advertised amenities.

On November 20, 2009, the McCardle suit was settled with certain class members provided all access to all existing and future club facilities with no increase in dues.