April 29, 2021 - An investor in shares of Peloton Interactive, Inc. (NASDAQ: PTON) filed a lawsuit in the U.S. District Court for the Eastern District of New York over alleged violations of Federal Securities Laws by Peloton Interactive, Inc. in connection with certain allegedly false and misleading statements made between September 11, 2020 and April 16, 2021.

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 went public in late September 2019. Peloton Interactive, Inc sold 40 million shares at $29 per share in its initial public offering, which raised $1.16 billion. Peloton Interactive, Inc. reported that its Total Revenue rose from $915 million for the 12 months period that ended on June 30, 2019 to over $1.82 billion for the 12 months period that ended on June 30, 2020, and that its Net Loss over those respective time periods declined from $195.6 million to $71.6 million.

On April 17, 2021, the U.S. Consumer Product Safety Commission ("CPSC" or the "Commission") issued a warning "about the danger of popular Peloton Tread+ exercise machine after multiple incidents of small children and a pet being injured beneath the machines," stating that "[t]he Commission has found that the public health and safety requires this notice to warn the public quickly of the hazard." The CPSC's warning advised that "[t]o date, CPSC is aware of 39 incidents including one death."

Shares of Peloton Interactive, Inc. (NASDAQ: PTON) declined from $171.09 per share on January 14, 2021, to as low as $99.12 per share on April 21, 2021.

According to the complaint the plaintiff alleges on behalf of purchasers of Peloton Interactive, Inc. (NASDAQ: PTON) common shares between September 11, 2020 and April 16, 2021, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between September 11, 2020 and April 16, 2021, the defendants made false and/or misleading statements and/or failed to disclose that 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, that safety was not a priority to Peloton as 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+, that as a result of the safety concerns, the U.S. Consumer Product Safety Commission (“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, and that as a result of the foregoing, defendants’ statements about Peloton’s business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.