Expiration dates have legal relevance, as SoulCycle found out as the defendant in a class action lawsuit.
Lead plaintiff Rachel Cody filed the SoulCycle class action lawsuit on August 25, 2015. The class action lawsuit alleged the expiration dates for SoulCycle class packages violated the Electronic Funds Transfer Act, as well as several state laws that apply to the purchase of gift cards and certificates.
According to court documents, the class action lawsuit states SoulCycle customers have to buy certificates before they are eligible to register for a cycling class at the fitness studio. Every certificate includes an expiration date that is set by the number of classes customers purchase. Cody asserts some of the certificates expired in 30 days and SoulCycle did not refund customer payments. Cody claims in the class action lawsuit that the expiration date policy implemented by SoulCycle violates the Electronic Funds Transfer act and the Credit Car Accountability and Disclosure Act. Both federal statutes contain legal language that disallows expiration periods fewer than five years.
A judge preliminarily approved the class action settlement on June 22. 2017. Although SoulCycle agreed to the class action settlement, the company denies any violation of federal law.
What You Need To Know
Class counsel released a statement that said eligible class members “include anyone who, between Aug. 25, 2014 and Feb. 10, 2017, purchased a SoulCycle class that expired before it was used, and anyone with a California billing address who, between Feb. 1, 2012 and Feb. 10, 2017, purchased a SoulCycle class for use in California that expired before it was used. Class Members who would like to opt out of or object to the SoulCycle settlement must do so no later than Sept. 11, 2017.” The maximum potential award for eligible class members is $50 or two SoulCycle classes. Claimants who bought a SoulCycle class and did not attend the class during the class period will have one class automatically added to a SoulCycle account.
Eligible class members must confirm under the penalty of perjury that all of the information presented on the class action settlement claim form is accurate. The deadline for filing a valid claim is September 11, 2017. The judge presiding over the class action settlement called Cody v. SoulCycle Inc., Case No. 2:15-cv-06457, in the U.S. District Court for the Central District of California has schedule the final hearing on October 2, 2017. Learn more about what transpired at the final hearing by visiting the class action settlement website www.CycleClassAction.com.
Dorian S. Berger and Daniel P. Hipskind of Berger & Hipskind form part of the class counsel. Nicholas Diamand rounds out the legal team for the plaintiffs. The law firm DLA Piper LLP has four attorneys providing legal counsel for the defense.
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