New York Sports Club has settled a lawsuit that the state attorney general’s office brought against it for allegedly refusing to cancel memberships when its gyms were closed during the pandemic, new court papers show.
NY Attorney General Letitia James in September sued Town Sports International — the parent company of NYSC and Lucille Roberts — claiming it illegally profited from the coronavirus pandemic by not making good on its promise to credit members for charges to their accounts during COVID-19 gym closures.
“A public health crisis did not give these gyms license to lift up their finances through unlawful charges,” James said in a prepared statement.
As part of the settlement reached between James’ office and TSI, James has been given control over a $250,000 bond — posted by the company in 2015 under the Health Club Services Law — to pay back members who were charged when gyms weren’t open, papers filed Wednesday in Manhattan Supreme Court show.
The parent company has since been bought out as part of its bankruptcy case and as of Nov. 30, “will be wound down and will cease to exist,” the court documents say.
NYSC and Lucille Roberts facilities are now being run by a different company, and the new owners are not involved in the case James’ office said.
Still, the judgment “is not intended to be, and should not be construed as, an admission of liability by TSI,” the court filing reads.
The settlement agreement must still be approved by a judge.
TSI lawyer Donald Derrico told The Post, “We do not comment on litigation matters and/or resolutions.”
Victims can file complaints to recoup their losses through James’ office.