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.”