NEW YORK (Reuters) – The previous proprietor of New York Sports activities Golf equipment and Lucille Roberts will forfeit a $250,000 bond to settle New York Lawyer Normal Letitia James’ lawsuit over its billing practices throughout the coronavirus pandemic.
James had sued City Sports activities Worldwide Holdings Inc in September, saying it stored charging membership dues, did not problem promised credit, and refused to honor cancellation requests after the pandemic compelled it to shut its New York gyms final March.
The settlement papers had been filed in a New York state court docket in Manhattan on Wednesday. City Sports activities didn’t admit legal responsibility.
James had sued City Sports activities in September, two weeks after the corporate filed for Chapter 11 chapter safety.
A bunch of lenders led by personal fairness agency Tacit Capital later took management of many City Sports activities property in trade for $80 million in debt. City Sports activities is now winding down.
James plans to supply restitution to fitness center members with the $250,000 bond, which City Sports activities posted in 2015 underneath a state legislation to guard these members throughout a chapter.
She mentioned City Sports activities had agreed final April to halt its improper billing practices, however resumed them in September after gyms in New York had been allowed to reopen, even charging members of gyms whose doorways remained closed.
The brand new house owners of New York Sports activities Golf equipment and Lucille Roberts are usually not a part of Wednesday’s settlement.
City Sports activities operated 99 New York Sports activities Golf equipment and 16 Lucille Roberts earlier than the pandemic struck. It additionally operated gyms in Boston, Philadelphia and Washington, D.C.
Reporting by Jonathan Stempel in New York; Enhancing by David Gregorio