Weight loss app provider Noom has reached a $62 million lawsuit settlement. The lawsuit accused the company of forcing customers into automatic, expensive renewals that are hard to cancel.
This was after customers were tricked into signing up for a risk-free trial, with the non-refundable payment lasting up to eight months redeeming a total of $199 at the end of the free trial.
According to the preliminary settlement, filed Friday night in federal court in Manhattan, Noom is expected to pay $56 million in cash and offer $6 million of subscription credits.
Individual payouts are expected to be between $30 and $167 per person. Those benefiting from the settlement fee include customers who purchased automatically renewed Noom Healthy Weight subscriptions between May 2016 and October 2020 and did not receive a refund.
Founders Saeju Jeong and Artem Petakov commented on the issue in a blog post, announcing that it will “allow us to focus our energy on delivering the best possible health outcomes for our Noomers.”
For more information, read the original story in Reuters.