NEW YORK (Legal Newsline) – A Michigan woman can’t use New York consumer protection law to sue Peloton over a dramatic reduction in its content.
The class action said Peloton had promised an ever-increasing library of content, but the company slashed its song catalogue by more than 50% after the National Music Publishers Association sent it a cease-and-desist order that resulted in a $150 million lawsuit by several of the group’s members.
Michigan resident Alicia Pearlman tried to sue Peloton in New York federal court under the New York General Business Law. After once denying her attempt to do so, Judge Lewis Liman ruled July 12 that she failed to amend her complaint in a way that would allow her claims.
“Even after discovery, she has failed to allege that she has statutory standing to pursue her claims under the NYGBL,” Liman wrote, citing another decision that said if the plaintiff had better facts to allege, “it is safe to assume that she would have alleged them.”
Attorneys at DiCello Levitt Gutzler in New York and Keller Lenkner in Chicago are pursuing the case. Liman’s decision comes in response to Peloton’s motion to dismiss filed earlier this year.
“Despite the opportunity for a do-over, and with the benefit of discovery, Plaintiffs’ Amended Complaint suffers from the same deficiency as their original complaint: it fails to plausibly allege that Ms. (Alicia) Pearlman, a citizen and resident of Michigan, has standing…” Steven Feldman of Latham & Watkins wrote.
“Sections 349 and 350 have a statutorily defined territorial limitation, and both protect consumers in their transactions that take place in New York State. Despite this clear statutory mandate, Plaintiffs’ original complaint failed to allege any connection between Ms. Pearlman’s alleged purchase of Peloton products and services and New York State.”
Liman ruled Pearlman failed to allege any part of her purchase of a Peloton exercise bike took place in New York. He gave Pearlman the chance to amend her case to make claims under Michigan law.
The decision does not address the claims of co-lead plaintiff Eric Fishon.