A company that claimed its athletic shoes strengthened and toned muscles and helped burn calories has entered a settlement agreement with plaintiffs who filed their consumer-fraud class action in a Massachusetts federal court. Carey v. New Balance Athletic Shoe, Inc., No. 11-cv-10001-LTS (U.S. Dist. Ct., D. Mass., preliminary approval order filed, August 22, 2012). If the agreement is finally approved, it will resolve similar claims filed by plaintiffs in California and Arkansas. One of the Arkansas cases was summarized in the April 28, 2011, issue of this Report. Under the agreement, New Balance does not admit any liability, and the settlement fund is capped at $2.3 million. Any funds remaining will be donated to the Diabetes Research & Wellness Foundation, American Cancer Society and American Heart Association. Without the support of a clinical study, the company will not be able to advertise that its toning shoes strengthen muscles.
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New Balance agrees to settle consumer fraud action over health-benefit claims for shoes
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