Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, June 19, 2023 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Peloton Interactive, Inc. (“Peloton” or the “Company”) (NASDAQ: PTON) investors that a lawsuit filed on behalf of investors that purchased Peloton securities between May 10, 2022, and May 10, 2023, inclusive (the “Class Period”).
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 844-767-8529 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
This class action lawsuit aims to obtain compensation from the defendants for alleged violations of federal securities laws.
According to the complaint, the defendants, throughout the specified period, made false and deceptive statements about the company's business, operations, and compliance policies. Specifically, they provided misleading information and failed to disclose certain facts, including: (i) the seat posts of certain Peloton Bikes were prone to breaking or detaching during use, posing a safety risk to users; (ii) as a result, the company would likely need to recall millions of Peloton Bikes; (iii) the company exaggerated its efforts to improve product safety, underestimated expected future returns, and downplayed the need to set aside additional reserves for future expenses related to product recalls; (iv) the disclosure of these facts would have a negative impact on the company's business, financial results, and reputation; and (v) consequently, the company's public statements were consistently false and misleading.
On May 11, 2023, the Consumer Product Safety Commission (CPSC) issued a product recall affecting approximately 2.2 million Peloton Bikes, stating that there was a risk of the bike's seat post assembly breaking during use, which could lead to falls and injuries for users. As a result of this announcement, Peloton's Class A common stock price dropped by $0.67 per share, or 8.9%, closing at $6.86 per share on May 11, 2023.
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The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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