Vibram USA Agrees to $3.75 Million Settlement
National
Vibram USA has agreed to pay a total of $3.75 million to consumers who bought its FiveFingers shoes to settle a 2012 lawsuit that alleged it marketed the shoes with unsubstantiated claims that they strengthened muscles and prevented injury.
“Even though Vibram expressly denies any wrongdoing, Vibram considers it desirable for these cases to be settled and dismissed, because this Settlement will finally put Plaintiffs’ claims and the underlying matters to rest and will avoid the substantial expense, burdens, and uncertainties associated with the continued litigation of these claims and cases,” reads a copy of the settlement filed with the U.S. District Court in Massachusetts.
Under the proposed settlement, consumers who purchased a pair of the shoes between March 21, 2009, and the date of the first dissemination of summary settlement, or class, notice, will be eligible for a refund of up to $94 per pair up to two pairs. The class action settlement manager can require consumers submit proof they purchased the shoes during the claim period. The proposed settlement filed with the court notes that that, based on similar settlements, it is reasonable for class members to expect to receive between $20 and $50 per pair.
Any money left over in the settlement fund after payment of all claims and expenses shall be distributed to the American Heart Association with an “earmark relating to research regarding health benefits associated with running or exercise or substantially similar research, or such other beneficiary as the Parties and the Court shall agree at the time of the Final Judgment and Final Order.”
Once the U.S. District Court in Massachusetts approves the settlement, Vibram will deposit $3.75 million into an escrow account, which will be used to administer and pay claims to consumers. The settlement also calls for Vibram to establish a website where consumers can make their claims, and post banner ads with the settlement information on a number of websites, including www.RunnersWorld.com and www.Facebook.com, until it makes approximately 300,000,000 impressions.
According to a report by Runner’s World, consumers will be able to file their claims at www.FiveFingersSettlement.com
