Skechers USA Inc. (NYSE: SKX) will shell out $40 million to settle a class-action lawsuit filed against the sneaker company by consumers who bought its shoes after ads claimed they would help people lose weight and strengthen muscles.
The company denies the allegations.
According to the Federal Trade Commission, a U.S. district judge in Louisville, Ky., approved the deal, which covers more than 520,000 claims.
Those with approved claims will be able to get a maximum refund for their purchase of up to — $80 for a pair of Shape-Ups; $84 for a pair of Resistance Runner shoes; $54 for a pair of Podded Sole Shoes; and, $40 for a pair of Tone-Ups.
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The judge also awarded $5 million for the attorneys in the case to split, the Associated Press reported.
According to the terms of the settlement, that money would be in addition to the $40 million set aside for consumers. Additionally, two lead plaintiffs in the case will each receive payments of $2,500.