9th Circ. Nixes Massage Envy's $10M Deal Over Counsel Fees

By Lauren Berg (October 20, 2021, 10:07 PM EDT) -- The Ninth Circuit tossed spa chain Massage Envy Franchising LLC's $10 million voucher deal to resolve class claims over increased membership fees, saying on Wednesday the lower court needs to reexamine if the settlement provides preferential treatment to the class counsel.

The three-judge appellate panel first determined the California district court erred in finding the vouchers were not coupons under the Class Action Fairness Act, which affects the way a class counsel's attorney fees are calculated, according to the opinion.

In a coupon settlement, the fees are based on the redemption value of the vouchers, rather than on their face value,...

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