Plaintiffs v 24 Hour Fitness
24 Hour Fitness Class Action Lawsuit Certified for RICO Bank Fraud and Wire Fraud
One-and-a-half million former members of 24 Hour Fitness, the gym popularized by the television show "Biggest Loser," are permitted to pursue a nationwide class action case
against 24 Hour Fitness for violating the Racketeer Influenced and Corrupt Organizations Act (RICO) and the Electronic Fund Transfer Act (EFTA), per a decision by the United States Court of Appeals, Ninth Circuit.
Friedman vs. 24 Hour Fitness USA, Inc., (Case # 06-06282), alleges that 24 Hour Fitness continues to deliberately take monthly payments out of consumer's accounts after the member cancels membership. The case was filed in U.S. District Court, Central District of California.
The gym insists all members pay their monthly memberships by electronic transfer. It is estimated that 24 Hour Fitness is making $1.6 million a month that it is getting from former members' bank and credit card accounts by defrauding such companies as Bank of America and J.P. Morgan Chase, which process payments via the national financial system networks for electronic fund transfers.
24 Hour Fitness is considered the nation's largest fitness chain, owned by the private equity firm Forstmann, Little & Co., based in New York.
The 24 Hour Fitness class action will now proceed to trial. If the gym is found in violation of the RICO laws, the company faces potential liability for more than $100 million.
For more information contact class counsel:
Wasserman, Comden & Casselman, LLP
800.736.6800 or
visit www.wcclaw.com
