Peloton gets tiny glimpse of its glory days

A stationary bicycle inside of a Peloton store is pictured in the Manhattan borough of New York City, U.S., January 25, 2022. REUTERS/Carlo Allegri

NEW YORK, Aug 12 (Reuters Breakingviews) - Remember when Peloton Interactive (PTON.O) was all the rage? A U.S. court ruling on Thursday is a reminder that its best days are behind it. A Manhattan District judge ruled that the $4 billion virtual fitness company must face a proposed class action lawsuit that accuses it of misleading customers about the size of its music library. Sounds like bad news, but shareholders seem happy enough for Peloton just to be getting some attention.

The lawsuit is a result of a 2019 decision to purge many of Peloton’s fitness classes after music publishers sued it for streaming songs without the right licenses. The company has suffered from slowing demand, a legal spat with Lululemon Athletica (LULU.O), and even some bad press when a “Sex and the City” character dropped dead after a Peloton class read more . After losing 90% of its market value over the past year, Peloton gained back 2% on Friday. It’s a tiny sign of its former glory in a long uphill climb. (By Lauren Silva Laughlin)

(The author is a Reuters Breakingviews columnist. The opinions expressed are their own.)

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