Peloton, iFit settle patent dispute, dropping one of many lawsuits
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Peloton (NASDAQ:PTON) is settling with NordicTrack parent iFit, knocking one case off of its busy docket.

Peloton (PTON
-1.7%) had previously sought to penalize its competitors for patent violation due to the use of leaderboards and live classes. This included peers like iFit and Echelon Fitness. However, this infringement action has not borne fruit for the company in the past. This includes a back and forth battle with Echelon Fitness and a lingering standoff with Lululemon (LULU).

As the company deals with an over 80% slide in the value of its shares over the past year and reportedly seeks investors to take a minority stake and help right the ship, the settlement of a costly lawsuit likely comes as some relief for investors. Overall, the settlement may signal a less-litigious strategy moving forward as more pressing, core-business issues preoccupy executives.

âAll pending actions between the companies will be dismissed,â the settlement announcement states. âAs a result of this comprehensive settlement, iFIT has agreed to remove certain on-demand leaderboard technology from its products, and Peloton has agreed to license certain iFIT patents relating to remote control technology.â

Shares of Peloton (PTON) fell 2% in Mondayâs trading.
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