Noom, Auto-Billing Class Seek First OK for $56 Million Cash Deal

Noom Inc. and customers who say the weight-loss company wrongfully overcharged them have asked a federal judge in New York to greenlight a settlement that includes $56 million in cash.

California resident Geraldine Mahood filed the original complaint in May 2020, saying Noom duped thousands of unwitting customers into purchasing auto-renewing memberships for personalized weight loss programs. Mahood sought at least $100 million in damages.

The complaint was amended four times and the parties underwent extensive discovery. The parties reached an agreement in principle Sept. 14, according to court records in the U.S. District Court for the Southern District of ...