San Diego, CA -- (SBWire) -- 08/14/2023 --An investor, who purchased shares of Peloton Interactive, Inc. (NASDAQ: PTON), filed a lawsuit over alleged violations of Federal Securities Laws by Peloton Interactive, Inc.
Investors who purchased shares of Peloton Interactive, Inc. (NASDAQ: PTON) have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
New York based Peloton Interactive, Inc. provides interactive fitness products in North America. It offers connected fitness products, such as the Peloton Bike and the Peloton Tread, which include touchscreen that streams live and on-demand classes. Peloton Interactive, Inc markets and sells its Peloton Bikes nationwide through Peloton and Dick's Sporting Goods stores, as well as online at Onepeloton.com, Amazon.com, and Dicksportinggoods.com.
In 2021, Peloton Interactive, Inc was mired in controversy after the U.S. Consumer Product Safety Commission ("CPSC") issued an urgent warning to stop using the Company's treadmill products because of risks of injury and death posed to children and pets in the vicinity of those products. At first, Peloton Interactive, Inc vehemently denied the CPSC's claims, but was ultimately forced to recall the treadmill products while publicly apologizing for attempting to refute the agency's warnings. Peloton Interactive, Inc has since assured investors, consumers, and the overall market that the Company has worked cooperatively with the CPSC to further enhance the safety of its products, while signaling a decrease in the need to book additional reserves for potential future product recall expenses, in an attempt to regain the public's trust and repair its damaged brand and reputation.
On May 11, 2023, the CPSC issued a product recall affecting roughly 2.2 million Peloton Bikes, stating that "[t]he bike's seat post assembly can break during use, posing fall and injury hazards to the user."
Shares of Peloton Interactive, Inc. (NASDAQ: PTON) declined from $12.02 per share on April 04, 2023, to $6.62 per share on May 12, 2023.
The plaintiff claims that between May 10, 2022 and May 10, 2023, the Defendants made false and/or misleading statements and/or failed to disclose that the seat posts for certain of the Company's Peloton Bikes were prone to break or otherwise detach during use, rendering them unsafe for users, that as a result, the Company was likely to recall millions of Peloton Bikes, that accordingly, Peloton overstated its efforts to enhance the safety of its products, understated its estimated future returns, and downplayed the Company's need to book additional reserves for future product recall expenses, that all the foregoing, once revealed, was likely to negatively impact the Company's business and financial results and reputation, and that as a result, the Company's public statements were materially false and misleading at all relevant times.
Those who purchased shares of Peloton Interactive, Inc. (NASDAQ: PTON) have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com
About The Shareholders Foundation
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
NASDAQ:PTON Shareholder Notice: Lawsuit Alleges Securities Laws Violations by Peloton Interactive, Inc.
A lawsuit is pending for investors in Peloton Interactive, Inc. (NASDAQ:PTON) shares over alleged securities laws violations.