Vibram USA has agreed to pay a total of $3.75 million to consumers who bought its FiveFingers shoes to sellte a 2012 lawsuit that alleged it marketed them with unsubstantiated claims that they strengthened muscles and prevented injury. Despite the proposed payments, Vibram denied any wrongdoing in the case.
The company will also cease claiming the shoes reduce injury or strengthen muscles, nor will it assist others in making any health benefit claims about FiveFingers footwear or similar products, unless such claims are based on competent and reliable scientific evidence.
The $3.75 million will be used to reimburse members of the class, pay the costs of administering claims and the plaintiffs’ counsel attorney fees. In exchange for accepting the proposed settlement, plaintiffs would release Vibram USA from all future claims related to the purchase of the FiveFingers during the claims period.
The settlement represents a fraction of Vibram FiveFinger retail sales, which neared $160 million in 2011 alone, according to retail point-of-sale data collected by SportScanINFO. (See link to related story below.)
“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.” Vibram has pledged not to lower its own donations or contributions to any entity, charity, charitable foundation or trust, and / or non-profit organization to recover the costs of the settlement.
More than two dozen models of Vibram's shoes qualify. Once the U.S. District Court in Massachusetts approves the settlment, Vibram will deposit $3.75 million into an escrow account, which will be used to administer and pay claims to consumers who them. 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 runnersworld.com and Facebook.com, until it makes approximately 300,000,000 impressions.
The class-action suit was brought against Vibram in March 2012 when Valerie Bezdek filed a suit in Massachusetts claiming that Vibram deceived customers by advertising that their shoes could reduce foot injuries and strengthen foot muscles. Subsequent claims in California and Illinois were consolidated before the Massachusetts court.
