In In re: Life Time Fitness, Inc. TCPA Litigation, 2015 WL 7737335, at *1-2 (D.Minn., 2015), Judge Ericksen gave final approval to a TCPA class action settlement with the following basic terms:

In the Agreement, Defendant agreed to make a Total Settlement Payment of at least $10,000,000 and no more than $15,000,000. Defendant’s Total Settlement Payment covers Settlement Costs, Cash Awards, and Membership Awards. Given the anticipated Settlement Costs and the claims by Settlement Class Members to Cash Awards and Membership Awards, a pro rata adjustment that significantly increases the Cash Award and the monetary credit amount of the Membership Award will be required to make Defendant’s Total Settlement Payment amount to $10,000,000.  The awards available to Settlement Class Members are a Cash Award or a Membership Award. Briefly, Settlement Class Members were given the choice of receiving a $100 check, subject to pro rata adjustment; a 3-month membership at a Life Time Gold Club; or a $250 credit to a Life Time membership, subject to pro rata adjustment. As noted above, the pro rata adjustment will significantly increase the Cash Award and the monetary credit amount of the Membership Award. The Court rejects Defendant’s argument that the Agreement constitutes a “coupon” settlement.  To determine an award of reasonable attorneys’ fees, a district court has the discretion to use the percentage-of-the-benefit method or the lodestar method. See id. at 244-46 . The Court exercises its discretion to use the percentage-of-the-benefit method.  The Court concludes that reasonable attorneys’ fees and expenses of Class Counsel are appropriately awarded in the amount of $2,800,000, which is 28% of the minimum Total Settlement Payment. Substantial benefits were conferred on the class. The defenses that Defendant would have asserted in the absence of a settlement posed genuine risks to Class Counsel’s pursuit of the claims. There has been but one objection. The award is in line with awards made in similar cases. An incentive award to representative plaintiffs may be appropriate. In re U.S. Bancorp Litig., 291 F.3d 1035, 1038 (8th Cir. 2002). The Court awards Class Representatives $3,000 each.

 

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TCPA