San Francisco consumer attorneys, Keller Grover, reached a $295 million class action settlement with 24-Hour Fitness Center Worldwide Inc., on behalf of 1.5 million consumers for violations of the federal Racketeer Influenced Corrupt Organizations Act (RICO) and the Electronic Funds Transfer Act (EFTA). After extensive negotiations and mediation, the U.S. District Judge Howard Matz in the Central District of California finally approved the settlement on July 12, 2010. The 2006 class action lawsuit was filed on October 2, after consumers came forward alleging that 24-Hour Fitness continued to withdraw membership fees from their bank accounts even after they had cancelled their gym membership, although the company contends that the consumers had approved the funds transfers.

The nationwide lawsuit accused 24-Hour Fitness of violating RICO and EFTA regulations, by continuing to withdraw gym membership fees. Under the settlement, each class action member can choose from one of two benefits: a payment of $20, or a Three Month Club Access Certificate, which allows the consumer to visit any 24-Hour Fitness club in the United States for three months at no charge. The Settlement checks and free Three Month Club Access Certificates were mailed in September. The settlement did not include a determination of liability. The plaintiff’s co-lead counsel, Jeffrey Keller said, “the settlement is unique because of the breadth of the award, which entitled consumers to transfer their three-month passes to family members and to use them at any 24-Hour Fitness Center in the country.”