Skechers USA Inc. must pay out $40 million in a class-action settlement brought against it in June 2010, a federal judge ruled Monday.
U.S. District Judge Thomas Russell in Louisville, Ky., approved the deal, which covers more than 520,000 claims from people who purchased eligible Skechers toning shoes from Aug. 1, 2008, until and including Aug. 13, 2012, in the U.S.
Those with approved claims will be able to receive repayments for their purchase — up to $80 per pair of Shape-Ups; $84 per pair of Resistance Runner shoes; up to $54 per pair of Podded Sole Shoes; and $40 per pair of Tone-Ups.
The settlement covers more than 70 lawsuits from across the country that were consolidated in federal court in Louisville. The court awarded $2,500 each to Tamara Grabowski and Venus Morga as incentive awards in their capacities as leading plaintiffs in the cases.
Skechers is authorized to commence payments at its discretion.
As disclosed in recent SEC filings, Skechers has already recorded a charge of $50 million during the fourth quarter ended Dec. 31, 2011, to reserve for costs and potential other exposures relating to the existing litigation and regulatory matters.