Peloton is supposed to be one of the hottest IPOs to watch from the IPO Class of 2019. After seeing some stops and starts in the IPO market, Peloton’s IPO may have run into yet another snag before it can get out of the gate.
Reports were out on Tuesday that a large group of music publishers is suing Peloton for up to $150 million in damages. The group of artists being named included Justin Timberlake, Drake, Lady Gaga and others. The publishing group is said to include Downtown Music Publishing, Pulse, Peermusic, Ulta Music, Ole, Big Deal, TRO Essex Music Group and Royalty Network and others.
The suit, filed in the U.S. District Court of the Southern District of New York, has alleged that Peloton’s exercise bike streams have used more than 1,000 songs and musical works without permission.
Peloton sells its own branded bike for $2,245 and receives additional revenues from a monthly video subscription service of live and on-demand classes. The company now also offers a $4,295 treadmill and has expanded its class offerings.
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Fortune recently highlighted how Peloton was on its climb to becoming a public company.
News of this sort may not kill an effort to come public via an IPO, but it can certainly add to uncertainty at a time when the investing public is wanting more certainty from its large IPOs.
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