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,...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!