Boston Sports Clubs Faced with a $3.85 Million Ruling for Pandemic-Related Invoicing Infractions
In a significant court victory, Massachusetts Attorney General Andrea Joy Campbell has secured a ruling against Patrick Walsh, the former CEO of Town Sports International LLC. The ruling stems from charges made against Walsh and his company for violating consumer protection laws and the Health Club Act during the pandemic.
The case, which generated over 2,000 complaints from members, centres around Boston Sports Clubs (BSC) continuing to charge members while gyms were closed. This was particularly evident in New York, where members of New York Sports Clubs and Lucille Roberts were affected.
According to the ruling, BSC charged members for services that wouldn't be delivered in April 2020. The court found the letters sent by BSC to be deceptive, as they promised future credits but did not mention the upcoming charges.
The Suffolk County Superior Court also found that Walsh made deceptive statements to members and violated the Health Club Act by thwarting members' ability to cancel their memberships.
As a result, Walsh has been ordered to pay $3,850,048 in restitution to the Commonwealth. In addition, under the New York agreement, Town Sports International forfeited rights to a $250,000 bond for restitution to affected members who were charged while gyms were closed.
The Attorney General's Office will oversee restitution to impacted members. However, it's important to note that at this time, impacted members do not need to take any action.
Following Town Sports International's bankruptcy filing in 2020, multiple BSC locations in Massachusetts and Rhode Island permanently closed. Some of the former BSC spaces have been taken over by operators including Choice Fitness, Planet Fitness, and the West Suburban YMCA.
Despite the ruling, the current whereabouts of Patrick Walsh are not publicly disclosed or available in the search results. Representatives for Walsh did not immediately respond to a request for comment.
In 2021, New York Attorney General Letitia James announced a resolution with Town Sports International over unlawful billing and blocked cancellations. This resolution in New York may provide further restitution for affected members in that state.
This case serves as a reminder for businesses to uphold their responsibilities towards their customers, especially during times of crisis. It also underscores the commitment of Attorney General Campbell and her office to protecting consumers in Massachusetts.
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