Shareholder rights law firm Robbins LLP announces that a purchaser of Peloton Interactive, Inc. (NASDAQ: PTON) filed a class action complaint against the Company and its officers and directors for alleged violations of the Securities Exchange Act of 1934 between September 11, 2020 and April 16, 2021. Peloton provides interactive fitness products, including the Tread+ treadmill, which it launched in 2018.
If you suffered a loss due to Peloton Interactive Inc.’s misconduct, click here.
Peloton Interactive Inc. (PTON) Misled Investors Regarding the Company’s Concerns for User Safety
According to the complaint, in October 2020, Peloton recalled 27,000 bikes after reports of pedal breakages and customer injuries. In commenting on the recall, a Peloton spokesperson stated, “There is no greater priority than the safety and well-being of Peloton Members.”
On March 18, 2021, Peloton revealed a tragic situation involving the death of a child from a Tread+. On April 17, 2021, the U.S. Consumer Product Safety Commission issued a press release warning consumers to stop using the Peloton Thread+, alerting the public to dangers, including death, associated with the product. The following day, Peloton announced that on its website that it had no intention to stop selling or to recall the Tread+. On this news, Peloton’s stock price fell $16.28 per share, or more than 14%, over the next three trading days, to close at $99.93 per share on April 21, 2021, damaging investors.
During the class period, Peloton failed to disclose that: (i) Peloton’s Tread+ had caused a serious safety threat to children and pets as there were multiple incidents of injury to both; (ii) safety was not a priority as defendants were aware of serious injuries and death resulting from the Tread+ but did not recall or suggest a halt of the product; and (iii) as a result of safety concerns, the U.S. Consumer Product Safety Commission had declared that the Tread+ posed a serious risk to public health and safety resulting in its urgent recommendation for consumers with small children to stop using the Tread+.
If you purchased shares of Peloton Interactive Inc. (PTON) between September 11, 2020 and April 16, 2021, you have until June 28, 2021, to ask the court to appoint you lead plaintiff for the class. If you would like more information regarding your rights, please contact Lauren Levi at (800) 350-6003 or firstname.lastname@example.org, or via our Shareholder Information Form.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
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