UNFAIR COMPETITION - Five Fingers class action settlement

Details here. 

The settlement consists of two kinds of relief. The first is refunds to class members who submit valid and completed claim forms. Vibram will deposit $3.75 million into an escrow account and those funds will be distributed to those valid class members who purchased a pair of Vibram FiveFingers between March 21, 2009 and the date of the first dissemination of summary settlement notice or class notice, whichever is earlier. FiveFingers will award up to a maximum of $94 per pair, though the agreement acknowledges that based on similar settlements it is reasonable for class members to expect to receive between $20 and $50 per pair.

For the second part of the settlement, Vibram has agreed to discontinue to make any claims that FiveFingers footwear is effective in strengthening muscles or reducing injury in its marketing and advertising campaigns, unless the company discovers new scientific evidence that proves it.   

Vibam is required to establish a website, www.fivefingerssettlement.com, to inform class members of the terms of the agreement. The company is also required to post banner ads with the settlement information on a number of websites, including runnersworld.com and Facebook.com, in order to deliver approximately 300,000,000 impressions.

Per the court agreement, the attorneys for the class members can receive up to 25% of the $3.75 million settlement, or $937,500. Vibram must pay up to an additional $70,000 of reasonable out-of-pocket expenses incurred by the plaintiff’s counsel in relation to this case.