Skechers USA Inc. has been told to give 520,000 customers refunds after it falsely claimed that their shoes would help people lose weight.
On Monday, a federal judge approved a $40 million class-action settlement between Skechers and consumers who purchased toning shoes. The consumers claimed the ads made claims that the shoes would help them lose weight.
The deal covers around 520,000 claims.
People who filed the approved claims will be able to get maximum repayment of their purchase, which is up to $80 per pair of Shape-Ups, $84 per pair of Resistance Runner shoes, $54 per pair of Podded Sole Shoes and $40 per pair of Tone-Ups.
The judge also awarded $5 million for the attorneys to split, and the money for the lawyers can not be taken from the $40 million settlement.
U.S. District Judge Thomas B. Russell considered many factors when making his decision.
"Accordingly, the court finds that the proposed settlement is fair, reasonable and adequate," Russell said.
This settlement covers more than 70 lawsuits filed from across the country over the controversial ads. Skechers has denied the allegations but is going to settle in order to avoid a long litigation.
The ads featured celebrities like Kim Kardashian and Brooke Burke, claiming that the shoes help people lose weight and strengthen their buttocks, legs and stomach.
The company said its Shape-Ups were fitted with curved "rockers" or a rolling bottom that allowed wearers to lose weight and tone their muscles. The natural instability, they claimed, helped the wearer "use more energy with every step."
Some advertisements claimed that people could increase "muscle activation" by 85 percent for muscles related to posture and 71 percent for muscles in the buttocks.
The Federal Trade Commission has banned Skechers from running similar ads in the future.