COMPANY |
Peloton Interactive, Inc. |
COURT |
United States District Court for the Southern District of New York |
CASE NUMBER |
21-cv-09582 |
JUDGE |
The Honorable Andrew L. Carter, Jr. |
CLASS PERIOD |
February 5, 2021 and November 4, 2021 |
SECURITY TYPE |
All Securities |
Case Background:
Peloton provides interactive fitness products such as the Peloton Bike and the Peloton Tread+ and Tread, which include touchscreens that stream live and on-demand classes. Peloton also provides connected fitness subscriptions and access to all live and on-demand classes. Peloton launched the Tread+ treadmill in 2018. At that time, it was called the “Tread.” Peloton renamed its signature treadmill in September 2020 to “Tread +.” The Class Period commences on September 11, 2020, when Peloton filed its annual report on a Form 10-K for the year ended June 30, 2020. Throughout the Class Period, the Defendants asserted that the safety and well-being of its customers was a priority.
The complaint alleges that throughout the Class Period, the Defendants made false and/or misleading statements and/or failed to disclose that: (1) in addition to the tragic death of a child, Peloton’s Tread+ had caused a serious safety threat to children and pets as there were multiple incidents of injury to both; (2) safety was not a priority to Peloton as the defendants were aware of serious injuries and death resulting from the Tread+ yet did not recall or suggest a halt of the use of the Tread+; (3) as a result of the safety concerns, the CPSC declared the Tread+ posed a serious risk to public health and safety resulting in its urgent recommendation for consumers with small children to cease using the Tread+; (4) the CPSC also found a safety threat to Tread+ users if they lost their balance; (5) Tread featured similar safety concerns; (6) merely reinforcing safety warnings would be insufficient; (7) the CPSC and Peloton would issue a recall of the Tread+ and Tread; and (8) as a result of the foregoing, the Defendants’ statements about Peloton’s business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Current Status of Case:
On June 16, 2023, Defendants filed a Motion to Dismiss the action. The Motion has been fully briefed and is pending before the Court. This action is ongoing.
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