The New York Sports Club has settled a lawsuit that the state attorney general’s office brought against it for allegedly refusing to cancel membership when its gym epidemic, shut down during a new court paper show.
In September, NY Attorney General Letitia James sued Town Sports International – the parent company of NYSC and Lucille Roberts – illegally from the Corvovirus epidemic, claiming that COVID-19 for allegations of its accounts during gym closures The members did not make good on their promise to give loans. .
James said in a prepared statement, “The public health crisis did not license these gyms to be financed through illegal charges.”
As part of the settlement reached between James’s office and the TSI, James is given control of a $ 250,000 bond by the company in 2015 under the Health Club Services Law – payments to members charged if the gym is not open to do. Papers filed Wednesday in the Manhattan Supreme Court show.
Court documents state that the parent company has since been purchased as part of its bankruptcy case, and on November 30 “will be wound up and cease to exist.”
James’s office said the NYSC and Lucille Roberts facilities are now run by a different company and the new owners are not involved in the case.
Nevertheless, “the court is not intended, and should not be admitted, by TSI as an admission of liability,” the court filed.
The settlement agreement must still be approved by a judge.
“We do not comment on litigation cases and / or motions,” TSI’s attorney Donald Derico told the Post.
Victims can file a complaint through James’s office to compensate for their loss.
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