US District Court Allows $100M Fraud Class Action Lawsuit Against Diet App Noom to Proceed for Deceptive Auto-Renewal & Billing Practices

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NEW YORK, Aug. 17, 2021 (GLOBE NEWSWIRE) —  Justice for the customers nationwide who have been affected by misleading billing practices by Noom, Inc. – the supplier of a subscription-based app for monitoring meals consumption and train habits – moved nearer to trial when the U.S. District Court for the Southern District of New York sustained 274 class motion counts in opposition to the favored startup. The class-action lawsuit is valued at greater than $100 million.

Judge Lorna Schofield denied Noom’s a number of requests for dismissal and allowed the lawsuit – filed by Armonk, New York, based mostly regulation agency Wittels McInturff Palikovic (WMP) to proceed. The lawsuit alleges that Noom’s app-based weight-reduction plan platform engaged in an computerized renewal scheme that duped huge numbers of consumers nationwide. In the ruling, Judge Schofield upheld WMP’s argument that “at a minimal, every plaintiff went by means of Noom’s 58-step sign-up move and relied on info in that course of to type an inexpensive perception that they have been signing up just for a trial interval and never recurring expenses.”

“This go well with will show that Noom engaged in one of many largest auto-renewal scams in American historical past,” stated Steven Wittels, companion with WMP. “Consumers have been led to imagine that they have been having fun with a free trial interval however as an alternative have been charged for a complete 12 months’s price of service. To make issues worse, Noom failed to offer any cheap approach to cancel or get a refund.”

The go well with additional alleges that buyers have been unaware that they might be charged nonrefundable charges as excessive as $199 for a multi-month eating regimen program they by no means wished or used.

Noom just lately obtained $560 million in enterprise funding from a who’s who of VCs, together with Sequoia Capital, Silver Lake, and WTA star Serena Williams. Despite the outpouring of complaints by customers and workers concerning the firm’s shady enterprise practices, Noom is barreling ahead with a deliberate IPO led by Goldman Sachs scheduled for early subsequent 12 months.

“Sequoia, Serena, Silver Lake, and Godman Sachs are purported to be the adults within the room,” stated, stated Burkett McInturff, companion with WMP. “Instead, they’re fostering Noom’s misleading billing practices, enabling them to prey upon huge numbers of susceptible Americans who trusted Noom’s supposedly totally different method to weight reduction and higher well being.”

The lawsuit particulars how Noom’s development techniques contain a fraudulent sign-up course of that deploys an online of underhanded tips to dupe customers into inadvertently incurring expenses.

A duplicate of Judge Schofield’s ruling and the Class Action Complaint could be obtained by contacting [email protected].

About Wittels McInturff PalikovicSteven L. Wittels, named a “Super Lawyer” 9 years operating (2013-2021) for his class-action litigation success, is a nationally acknowledged class-action legal professional who concentrates on shopper fraud, civil rights, and basic public curiosity circumstances. The agency represents victims of shopper fraud, employment discrimination, labor and wage violations, predatory lending, whistleblower retaliation, mass torts, and different wrongdoing. Mr. Wittels was a lead trial counsel within the largest employment class motion ever tried to verdict in New York, which resulted in a $253 million jury award in opposition to Novartis. Co-counsel Tiasha Palikovic and J. Burkett McInturff are each rising stars within the class motion area, having obtained settlements for victims of shopper fraud and employment discrimination totaling greater than $100 million previously 4 years.

Source: WMP Law

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