NEW YORK (Reuters) – Peloton Interactive on Friday won the dismissal of a proposed shareholder class action lawsuit accusing the fitness equipment maker of concealing safety-related problems that led to a May 2023 recall of 2.2 million bikes following reports of defective seat posts. U.S. District Judge Margo Brodie in Brooklyn, New York, found no […]
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Peloton wins dismissal of shareholder lawsuit over seat post recall
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NEW YORK (Reuters) – Peloton Interactive on Friday won the dismissal of a proposed shareholder class action lawsuit accusing the fitness equipment maker of concealing safety-related problems that led to a May 2023 recall of 2.2 million bikes following reports of defective seat posts.
U.S. District Judge Margo Brodie in Brooklyn, New York, found no proof that Peloton intended to mislead investors by initially projecting that the recall would cost $8.4 million, before setting aside an additional $40 million three months later.
She also said Peloton’s risk disclosures were not materially misleading, in part because they explicitly warned that recalls were possible.
(Reporting by Jonathan Stempel in New York; Editing by Leslie Adler)