NEW YORKâNoom Inc. reached a $62 million settlement of a lawsuit accusing the weight loss app provider of tricking customers into signing up for “risk-free” trial periods only to force them into automatic, costly renewals that were difficult to cancel. The preliminary settlement filed on Friday night in Manhattan federal court calls for Noom to pay $56 million in cash and offer $6 million of subscription credits. Court approval is required. Noom also made changes to its business practices that the company and the customers’ lawyers valued at between $31.2 million and $120 million. Noom was accused of extracting up to eight months of nonrefundable payments totaling as much as $199 once its trial periods expired, saddling some customers with weight-loss services they never intended to buy. The New York-based company denied wrongdoing, and said its disclosures and cancellation process complied with the law. In a blog post founders Saeju …
Noom Diet App Reaches $62 Million Settlement Over Automatic Subscription Renewals
February 15, 2022
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