The Business Litigation Blog

$40 Million Skechers Shape-up Settlement

Remember those Skechers TV commercials with Kim Kardashian that implied the shape-up shoes led to a toned body? Well, a class action lawsuit filed against Skechers USA Inc. was tentatively approved for settlement by a federal judge. The company agreed to pay $40 million as settlement charges in the case against consumers who bought the toning shoes after the misleading advertisements that made false claims to help people lose weight and tone muscles.

The advertisements claimed the shoes were designed to provide natural instability, which required more energy to run or walk; and hence helping to lose weight and strengthening the muscles. The series of shape-up shoes had four variations, all of which qualify for a repayment depending on the original cost.

In addition to $40 million, Skechers will also pay $5 million to the states that filed the suit in order to pay the lawyers and cover the cost of legal fees. This will also end a multi-state investigation that involved merely 40 U.S. States and more than 70 lawsuits across the country.

The Federal Trade Commission (FTC) has barred Skechers from showing the advertisements again in the future. This isn’t the first case of its kind. The FTC settled a similar case in 2011 with Reebok. That settlement determined that Reebok had to pay $25 million to the consumers for two of their product lines, alleging misleading advertisements.

For more information on this class action business lawsuit, click here.

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