Attorney General James Sues New York Sports Club and Lucille Roberts for Charging Illegal Dues and Prohibiting Consumers from Cancelling Memberships

Posted to Applied Web NY on Wed, 09/30/2020 - 14:59

NEW YORK – New York Attorney General Letitia James today filed a lawsuit against the parent company of New York Sports Clubs (NYSC) and Lucille Roberts for unlawfully charging monthly dues to members and for partaking in a variety of illegal and fraudulent practices involving consumers’ cancellation rights. In her proceeding against Town Sports International Holdings, Inc. (TSI Holdings) and Town Sports International, LLC (TSI LLC) — collectively TSI — Attorney General James alleges that the company violated the law by continuing to charge consumers dues and fees, despite the fact that all health clubs and gyms in the state were ordered closed after the coronavirus disease 2019 (COVID-19) pandemic began to spread widely across New York in March. After Attorney General James sent the company a letter in early April, stating she would take necessary steps to protect consumers, TSI implemented a freeze of membership fees and dues on April 8, 2020 and promised consumers they would provide credits in the future, but, on or around September 1, 2020, the company unlawfully resumed charging consumers and never provided them with the promised credits, even charging some consumers who are members of clubs that have yet to open. In connection with today’s proceeding, Attorney General James also seeks a temporary restraining order in an effort to immediately block TSI from continuing to charge any dues or fines to New York members who submitted cancellation requests or charging any dues or fines to members in New York whose primary — or home — gym remains closed. The temporary order is subject to court approval.

Bulletin assigned to: