9th Circ. Nixes Massage Envy’s $ 10 Million Lawyer Fee Deal

By Lauren Berg (October 20, 2021, 10:07 p.m. EDT) – The Ninth Circuit has rejected Massage Envy Franchising LLC’s $ 10 million voucher agreement to resolve class-action complaints about the increased fees for accession, saying on Wednesday that the lower court must reconsider whether the settlement grants preferential treatment to class lawyers.

The three-judge appeals committee first determined that the California District Court erred in finding that the coupons were not coupons under the Class Action Fairness Act, which affects how Class Counsel attorney fees are calculated, based on the notice.

In a coupon settlement, the charge is based on the redemption value of the coupons, rather than their face value, …

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