"The former CEO of Boston Sports Club's parent company has been ordered to pay $3.85 million in restitution after charging members for services that could not be provided in April 2020 due to the pandemic, officials announced last week. The state Attorney General's Office had sued Patrick Walsh, the former CEO of Town Sports International, and the Suffolk County Superior Court ruled in the office's favor on all counts after a multiweek trial, according to a release."
"The Court found that Walsh unfairly charged members in April 2020 for services he knew would not be provided, made deceptive statements to BSC members, and violated the Health Club Act by thwarting BSC members' ability to cancel their memberships and failing to honor cancellation requests," the AG's Office said. Before the April billing, the sports club reportedly told members, with Walsh's approval, that they would receive credits to their accounts when the gyms reopened, but customers did not receive the credits in July 2020"
Patrick Walsh, former CEO of Town Sports International, was ordered to pay $3.85 million after charging Boston Sports Club members for services unavailable during April 2020 pandemic closures. The Massachusetts Attorney General sued Walsh and won on all counts in Suffolk County Superior Court after a multiweek trial. The court found Walsh made deceptive statements, charged for services he knew would not be provided, violated the Health Club Act, and impeded members' ability to cancel memberships while failing to honor cancellation requests. Members were promised account credits that largely never materialized, and the AG received over 2,000 complaints about cancellation failures.
Read at Boston.com
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