Sammy’s has agreed to settle a federal wage theft lawsuit filed by current and former dancers of the Birmingham gentleman’s club for more than $632,000, according to court records.

The dancers filed the lawsuit in April, alleging they were illegally classified as general contractors and forced to share their tips with workers who do not customarily receive gratuities in violation of federal labor laws.

Under the $632,100 settlement, the 26 dancers will collectively net $354,270; $277,830 is earmarked for court costs and attorneys’ fees.

In a Nov. 25 joint filing in federal court in Birmingham, the gentleman’s club at 342 Valley Ave., near Homewood city limits, and the dancers asked U.S. District Court Judge Madeline Hughes Haikala to approve the terms of the settlement.

Haikala has yet to sign off on the agreement.

“The settlement allocations to Plaintiffs reflect the potential recovery and strength of Plaintiffs’ cases given the uncertainty of any recovery at trial on the merits and due to the financial condition of Defendants. Had Plaintiffs continued and sought a greater recovery, there was a strong likelihood that any greater recovery, which could not be guaranteed, would have been pyrrhic as greater time and expense would have been incurred …,” reads the filing.

The $632,100 is “greater than Defendants wished to pay and represents a compromise given the circumstances surrounding these matters,” the filing went on to say.

Patricia Cantavespre, the owner of S.J.B. Corp., the company Sammy’s is registered under, could not immediately be reached for comment.

The lawsuit initially sought at least $100,000 in compensatory damages in addition to restitution, attorney’s fees, penalties and interest and other damages.

In 2023, a federal judge ruled former dancers at The Furnace were employees of the Birmingham strip club, not independent contractors.

The dancers in that lawsuit claimed at 309 28th St. North, violated provisions of the Fair Labor Standards Act, including not paying them minimum wage or overtime.