Peloton Interactive, Inc. (NASDAQ: PTON) Securities Fraud Class Action:
The complaint alleges Peloton misled investors by misrepresenting and concealing that (1) Peloton was focused on safety, (2) Peloton’s Tread+ caused a serious safety threat to children and pets as there were multiple incidents of injury to both, including death, and (3) despite knowledge of the dangers posed by Tread+, defendants did not recall or suggest halting its use.
Investors began to learn the truth on Apr. 17, 2021, when the U.S. Consumer Product Safety Commission urgently warned consumers to stop using the Tread+ after finding one death and dozens of incidents of children being sucked under the Tread+. The next day, CEO John Foley announced Peloton had no intention of recalling or to stop selling the Tread+, calling the CPSC’s warning “inaccurate and misleading.”
Then, on May 5, 2021, Peloton issued a recall of its Tread+ and admitted it was wrong to call the CPSC’s warning “inaccurate and misleading.”
These events caused Peloton shares to decline sharply.
“We’re focused on investors’ losses proving Peloton deceived investors about the dangers posed by Tread+,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
Whistleblowers: Persons with non-public information regarding Peloton should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email PTON@hbsslaw.com.
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