Participants suing Tough Mudder Inc. for refunds on their registration fees for a relocated obstacle course run called “Mudderella” will have to wait a bit longer.
The U.S. District Court for the District of Massachusetts deferred ruling on their emergency motion for a temporary restraining order to prevent Tough Mudder from dissipating its assets or forming a new company.
Lisa C. Pazol and several others filed a proposed class suit after Tough Mudder moved the race from the Boston area to Maine days before the event, and they couldn’t participate.
Mediation resulted in a $225,000 settlement, but Tough Mudder didn’t make the payment, the court said.
The plaintiffs said they learned from public reports that Tough Mudder plans to split its business into two separate entities—a “Tough Mudder Bootcamp” gym business and the struggling obstacle course business.
But plaintiffs failed to show they would suffer irreparable harm if their motion were denied. The court didn’t find the requisite “strong indication” that the company will dissipate or conceal assets.
Tough Mudder has since offered to pay the settlement, plus interest and mediation costs. Additionally, Tough Mudder’s counsel told the court that the company isn’t planning to split.
The court put off ruling to give Tough Mudder time to provide an affidavit from a corporate officer who can confirm that the company isn’t planning to split the business, and that there are sufficient assets to pay any judgment.
Altman & Altman and others represented the plaintiffs. Foley & Lardner LLP represented Tough Mudder.
The case is Pazol v. Tough Mudder Inc., D. Mass., No. 19-40010, 1/17/19.