© Reuters. FILE PHOTO: A stationary bicycle within a Peloton retailer is pictured within the Manhattan borough of New York Metropolis, U.S., January 25, 2022. REUTERS/Carlo Allegri/File Picture
By Jonathan Stempel
NEW YORK (Reuters) – A U.S. decide on Tuesday refused to let Peloton Interactive (NASDAQ:) Inc clients pursue a category motion accusing the bike and treadmill maker of deceptive them in regards to the “ever-growing” dimension of its library of on-demand health courses.
In a 74-page resolution, U.S. District Decide Lewis Liman in Manhattan stated particular person points predominated over frequent points affecting the various hundreds of consumers within the proposed class, and due to this fact the purchasers couldn’t sue as a bunch.
The choice is a victory for New York-based Peloton, as a result of class actions can enable for higher recoveries at decrease value than when plaintiffs sue individually.
Attorneys for the purchasers had no instant remark.
Peloton had been accused of engaging individuals to purchase its merchandise based mostly on its improper dedication to offer an “ever-growing” or “rising” library of on-demand courses.
Clients sued after Peloton determined in March 2019 to purge greater than half of its estimated 12,000 courses, following litigation by music publishers that accused the corporate of streaming songs with out correct licensing.
In line with the purchasers, Peloton knew this might occur, but saved charging full value for merchandise containing copyrighted songs by Adele, Beyoncé, Luke Bryan, Drake, Ariana Grande, Madonna, Justin Timberlake, Jay Z and different artists.
Liman stated the purchasers couldn’t sue on a idea they had been induced to pay premium costs as a result of some won’t have seen Peloton’s challenged statements. He additionally stated the purchasers didn’t measure the damages attributable to these statements.
In opposing class certification, Peloton stated its costs remained fixed for greater than a yr after it eliminated courses, and that not everybody noticed its “ever-growing” or “rising” claims as a result of it didn’t promote them broadly.
Peloton settled the licensing lawsuit by the Nationwide Music Publishers’ Affiliation and 14 members in February 2020.
The case is Passman et al v Peloton Interactive Inc , U.S. District Courtroom, Southern District of New York, No. 19-11711.
