On Thursday, February 1, 2018, Wigdor LLP filed a proposed Class Action lawsuit against Town Sports International, Inc. (“TSI”), the publicly-traded parent company of regional fitness club brands New York Sports Clubs, Boston Sports Clubs, Washington Sports Clubs, and Philadelphia Sports Clubs. TSI is one of the largest owners/operators of fitness clubs in the country with approximately 544,000 current members across 150 gyms located in New York, Pennsylvania, Massachusetts and Washington D.C.
The lawsuit alleges that TSI engaged in fraudulent and deceptive consumer practices by denying its so-called “all access” members the ability to use fitness club locations it has branded as “Elite” clubs, several of which are located in the New York and Boston areas. As alleged, this deceptive practice has impacted hundreds of thousands of TSI customers who have purchased a gym membership known as the “Passport Membership,” which provides by contract that “if you have a Passport membership, you may use any TSI club at any time.”
TSI intentionally clusters its gym locations in dense and concentrated markets where customers will see value in paying a premium to be able to access numerous geographically convenient locations, according to the Complaint. However, despite having contracted with its Passport Members to provide them with all-access to any and all TSI locations, TSI has denied these members access to clubs branded as “Elite” or “Flagship” in an apparent attempt to charge additional and/or premium fees.
Statement from David E. Gottlieb, Partner at Wigdor LLP:
“Town Sports International’s decision to brand certain clubs as ‘Elite,’ and deny entry to its Passport Members, shows complete disregard for the rights of its loyal, long-paying customers who were told they would have all-access to TSI’s gyms.”
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