Judge John Meyer determined that a reasonable student would not associate yoga with religion because of the way the district set up its program. Meyer said he believed the district was not teaching any religious components during the classes and that he sees yoga as something similar to traditional PE sports such as kickball or volleyball. Meyers also found that the district's program follows state guidelines.The National Center for Law and Policy issued a statement today saying that today's decision "is not the end of the road for this case or the last word regarding the fate of yoga in public education—this is only the beginning."
UPDATE: Here is the full text of the court's Minute Order in Sedlock v. Baird, (CA Super. Ct., July 1, 2013), thanks to Volokh Conspiracy.