Educative Inc. $625,000 Subscription Autorenewal Settlement

California residents whom Educative Inc. enrolled in and automatically billed for a subscription between Nov. 16, 2019, and Nov. 14, 2023, may be eligible to receive a cash payment from a class action settlement.

Educative Inc. agreed to pay $625,000 to settle a class action lawsuit alleging it automatically renewed digital subscriptions and charged customers’ payment methods without providing the required disclosures and authorizations under California law.

Who are the class members?

The class includes all individuals who meet the following criteria:

• They enrolled in an automatically renewing Educative subscription between Nov. 16, 2019, and Nov. 14, 2023.
• They used a California billing address at the time of enrollment.
• They paid at least one automatic renewal fee during this period.
• They did not receive a full refund for their subscription.

The class includes annual, quarterly and monthly subscribers.

How much can class members get?

The settlement provides for a cash payment to eligible class members distributed on a pro rata basis from the net settlement fund. The estimated payouts are as follows:

• Annual and quarterly subscribers: $23.86
• Monthly subscribers: $11.93

These figures are estimates based on the total settlement fund and the expected number of eligible class members. The actual payment may be higher or lower depending on the final number of valid claims and deductions for settlement costs, attorneys’ fees and other expenses.

No action needed to receive payment

Class members do not need to submit a claim form to receive payment. The settlement administrator will identify eligible class members based on Educative’s records and distribute payments automatically.

Payout options

• Check mailed to the address on file
• Electronic payment

$625,000 settlement fund breakdown

The $625,000 settlement fund covers:

• Settlement administration costs: To be determined
• Attorneys’ fees: Up to $208,333
• Attorneys’ expenses: To be determined
• Service award to class representative: Up to $2,500
• Payments to eligible class members: Remainder of the fund

Important dates

• Exclusion deadline: Feb. 13, 2026
• Final approval hearing: Oct. 5, 2026

When is the Gelasio v. Educative Inc. payout date?

The settlement administrator will distribute payments within 60 days of final judgment entry. 

Why is there a class action settlement?

The class action lawsuit alleged Educative Inc. violated California law by automatically renewing subscriptions and charging customers without providing the required disclosures and obtaining proper authorization.

Educative denied any wrongdoing but agreed to settle to avoid the uncertainties and expenses of continued litigation.

Sources

1. Class notice
2. Settlement agreement
3. Settlement FAQ