Peloton Wins Dismissal of Shareholder Lawsuit Over Bike Recall
NEW YORK, July 29, 2023 - Peloton Interactive (PTON) has successfully dismissed a proposed shareholder class action lawsuit.
The lawsuit accused Peloton of concealing safety issues related to its bikes, leading to a massive recall in May 2023. However, U.S. District Judge Margo Brodie found no evidence to support these claims.
Brodie ruled that Peloton did not deliberately mislead investors by initially estimating the recall costs at $8.4 million and later increasing them to $40 million. She also determined that Peloton's risk disclosures were not materially misleading, as they explicitly warned of potential recalls.
This dismissal is a significant victory for Peloton, which has faced scrutiny over the safety of its products. The company has since implemented new safety measures and has maintained its commitment to providing consumers with high-quality fitness equipment.