New York Judge Allows Noom Auto-Renewal Subscription Class Action To Proceed
The court hearing the class action filed against health and diet app maker Noom has allowed the case’s legal proceedings to push through.
Judge Releases Decision In Favor Of Plaintiff
Filed by complainant Geraldine Mahood in a New York federal court, the Noom Auto-Renewal Subscription Class Action Lawsuit accused Noom of engaging in an unlawful auto-renewal subscription business model.
The said scheme ended up tricking customers into thinking that they were only availing of Noom’s trial period. However, the company ends up charging them with added subscription fees without their consent as soon as the trial period ends.
In addition, Noom also allegedly made it hard for their subscription holders to obtain a refund from the auto-renewed subscription plans or to cancel their relationship with the company altogether.
Judge Lorna Schofield of the United States (U.S.) District Court for the Southern District of New York sided with the plaintiff.
Agreeing with Mahood’s arguments, she allowed for the class action proceedings to push through. Should the case see itself towards the end in favor of the plaintiff, the beneficiaries’ claim amounts to almost $100 million as reported by different online outlets.
Catching Up With The Noom Class Action
The Noom Auto-Renewal Subscription Class Action Lawsuit, according to the plaintiff’s legal representative, is said to be one of the largest auto-renewal subscription schemes in the country that has been brought to the attention of the authorities.
Mahood shared that she first tried out Noom’s trial for only $10, knowing that she would only be charged by the company for that amount during the whole trial period of two weeks.
However, even before her trial term ended, she was surprised to find out that Noom automatically charged her $99 to upgrade her trial subscription to the company’s full-service package.
She wasn’t alone, though. It was believed that Noom ended up charging many customers for different subscription plans, with some even amounting to $199 in exchange for meal and diet programs customers did not even ask for in the first place.
This class action update comes while Noom is preparing for a debut in the stocks in late 2021. The company is believed to have raised more than $500 million worth of investments from notable figures and institutions ahead of its anticipated IPO or initial public offering.
Consider The Consumer will continue to keep you informed of the latest updates regarding this case. Stay tuned via the site’s official communications channels below.
About The Company
Noom Inc. is a global health care company known for its digital health platform and mobile app Noom. It provides users different wellness, fitness, and diet products and services. The company is based in New York.
Editor’s Note on Noom Auto-Renewal Subscription Class Action Lawsuit 2021:
This feature explains briefly the recent update surrounding the court’s decision to green-light the legal proceedings involving the Noom Auto-Renewal Subscription Class Action Lawsuit. Recently, Washington Post agreed upon a settlement for a similar class action lawsuit.
Case Name(s) & No.(s): Geraldine Mahood v. Noom Inc.; Case No.: 1:20-cv-03677
Jurisdiction: United States (U.S.) District Court for the Southern District of New York
Products/Services Involved: Noom customer subscription
Allegation(s): Noom has engaged in allegedly illegal auto-renewal schemes that harmed their customers’ interests.
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