Bezdek v. Vibram USA Inc.

79 F. Supp. 3d 324, 2015 WL 223786
CourtDistrict Court, D. Massachusetts
DecidedJanuary 16, 2015
DocketCivil Action Nos. 12-10513-DPW, 13-10764-DPW
StatusPublished
Cited by21 cases

This text of 79 F. Supp. 3d 324 (Bezdek v. Vibram USA Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bezdek v. Vibram USA Inc., 79 F. Supp. 3d 324, 2015 WL 223786 (D. Mass. 2015).

Opinion

MEMORANDUM AND ORDER

DOUGLAS P. WOODLOCK, District Judge.

Before’" me, following a fairness hearing and the submission of various post-hearing materials as I directed, is a proposed settlement agreement between the defendants, Vibram USA Inc. and Vibram Five-Fingers LLC (collectively, “Vibram”), both Massachusetts residents, and a nationwide class of consumers who purchased Five-Fingers “barefoot” footwear directly from the defendants or through authorized retailers between March 21, 2008, and May 27, 2014. The plaintiffs in these consolidated actions allege that the defendants misrepresented in their advertising and marketing that this footwear provides certain health benefits to wearers.

The plaintiffs have moved for approval of the proposed settlement agreement, which would establish a $3,750,000 non-reversionary settlement fund to provide refunds to eligible class members and cover the costs associated with this litigation, including administrative costs, attorneys’ fees and expenses, and incentive awards for the named plaintiffs. The agreement also provides that Vibram will refrain from making representations of health benefits associated with FiveFingers unless it has reliable evidence to support those representations.

In connection with settlement approval, class counsel for the plaintiffs seek $937,500 in attorneys’ fees, $61,674.44 in expenses,1 and $6,500 in plaintiffs’ incentive awards, allocating $2,500 each to Valerie Bezdek and Brian DeFalco, the named [331]*331plaintiffs here, and $1,500 to Ali Safavi, the plaintiff in a parallel proceeding in the Central District of California, who- has agreed to file a joint stipulation to dismissal of that action with prejudice if this settlement is approved. All of these fees and awards would be paid out of the settlement fund. Three objectors raised a variety of concerns about the proposal, contending among other things that the notice to the class and the monetary and injunc-tive relief provided by the agreement are inadequate, that the requested attorneys’ fees are excessive, and that incentive awards and a cy pres provision2 are inappropriate.

This memorandum sets forth in detail my reasons for finding that the proposed settlement agreement is fair, reasonable and adequate as required by Fed.R.Civ.P. 23(e). Accordingly, I will approve the class with finality and also approve the settlement agreement involving the class, Dkt. No. 80. I further award the attorneys’ fees, expenses, and incentive awards requested.

I. BACKGROUND

A. Procedural History

1. Underlying Actions

In mid-2012, plaintiffs in three states filed putative class action complaints alleging that the defendants engaged in deceptive marketing of FiveFingers footwear by advertising through in-store and online mechanisms, as well as through product packaging, that wearing Five-Fingers provides certain “health benefits,” including muscle strengthening and more natural movement and alignment, and representing that these health benefits are supported by scientific research.3 The underlying complaints in these actions contended that the assertions of health benefits and scientific support for such benefits are false and misleading.

On March 21, 2012, Bezdek filed the first of the complaints in this court on behalf of a proposed nationwide class, alleging violations of Mass. Gen. Laws ch. 266, § 91 (untrue and misleading advertising), Mass. Gen. Laws ch. 93A, §§ 2, 9 (unfair and deceptive practices), and Florida Statutes § 501.201 et seq. (on behalf of an alternative Florida-based class), as well as unjust enrichment. Bezdek purchased a pair of FiveFingers footwear in April 2011 for $104.90 through the defendants’ website, purportedly relying on the representations of health benefits associated with the footwear. She claims that if she, and other reasonable consumers, had known there was no scientific evidence supporting those benefits, she would not have purchased the footwear, and that she has suffered an economic loss attributable to the defendants’ conduct.

The defendants moved to dismiss Bez-dek’s complaint, and on June 25, 2012, Bezdek responded by filing an amended complaint, which the defendants challenged through a renewed motion to dismiss. On February 20, 2013, I denied the initial motion to dismiss as moot, and de[332]*332nied in part the renewed. motion to dismiss, finding that Bezdek adequately alleged falsity or deception, a cognizable “price premium” injury under the applicable consumer protection laws, and scienter. Bezdek v. Vibram USA Inc., Civ. No. 12-10513-DPW, 2013 WL 639145, at *3-4, *8-9 (D.Mass. Feb. 20, 2013). I allowed the renewed motion to dismiss on the unjust enrichment claim, because I concluded that the plaintiff had an adequate available remedy at law. Id. at *9.

The second relevant complaint was filed on July 9, 2012 in the United States District Court for the Central District of California by Safavi, represented by the same counsel as Bezdek. See Safavi v. Vibram USA Inc., No. 12-cv-05900-BRO-JCG (C.D.Cal.) (Compl., July 9, 2012, ECF No. 1). Safavi purchased a pair of FiveFing-ers footwear in July 2011 from an REI store in California for $92.96, also purportedly relying on the representations of health benefits associated with the footwear. . Id. ¶ 11. On behalf of a proposed class of California consumers, Safavi alleges violations of the California Unfair Competition Law, Business and Professions Code § 17200 et seq., the California Consumers Legal Remedies Act, Civil Code § 1750 et seq., and breach -of express warranty. Id. ¶¶ 66-92. On September 24, 2012, the Safavi action was stayed pending a ruling on class certification in the Bezdek action. Safavi, No. 12-cv-05900-BRO-JCG (Order, Sept. 24, 2012, ECF No. 24). If the settlement is approved, Safavi and the defendants agree to file a stipulation of dismissal of that action in the Central District of California.

The third relevant complaint was filed on August 13, 2012 in Illinois state court by DeFalco. See De Falco v. Vibram USA, LLC, No. 12-cv-07238, 2013 WL 1122825, at *2 (N.D.Ill. Mar. 18, 2013). DeFaleo purchased three pairs of Five-Fingers footwear in or about December 2011 and April 2012 from a FiveFingers authorized retailer in Illinois, for prices of approximately $130 and $110. Id. at *1. On behalf of a proposed class of Illinois consumers, DeFaleo alleges violations of the Illinois Fraud and Deceptive Business Practices Act, 815 ILCS § 505/1 et seq., breach of express warranty, and unjust enrichment. Id. at *6. The De Falco action was removed to the United States District Court for the Northern District of Illinois on September 11, 2012. Id. at *2. On March 18, 2013, the defendants’ motion to dismiss was granted in part and denied in part, and its motion for transfer to this district was granted. Id. at *12.

I stayed the Bezdek matter from March to May 2013 to allow for the transfer of the. De Falco

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79 F. Supp. 3d 324, 2015 WL 223786, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bezdek-v-vibram-usa-inc-mad-2015.