A California federal judge has granted final approval to a settlement for plaintiffs valued at up to $9.2 million in a class action lawsuit against indoor bicycling chain SoulCycle over illegal gift certificate expirations.
SoulCycle customers alleged that the company forced them to buy “series certificates” with short enrollment windows (sometimes as short as a 30-day span) and pocketed expired certificates with unused balances in violation of the U.S. Electronic Funds Transfer Act and California’s Unfair Competition Laws.
As reported by Law360, “The settlement will allow approximately 150,000 potential class members to reinstate up to two expired classes per customer or will reimburse those customers $25 for each of those classes, and has a total value between $6.9 million and $9.2 million.”
Under the settlement, in addition to customers receiving cash or cash equivalent options from the suit, SoulCycle has also agreed to adopt policy changes to its business practices so that consumers are made fully aware that “purchasing a course or series of SoulCycle courses does not constitute the purchase of a gift certificate or gift card,” noted Law360.
The case is Cody v. SoulCycle, Inc., Case No. 2:15-cv-06457 (C.D. Cal.).