PTON Deadline Alert

Kessler Topaz Meltzer & Check, LLP Reminds Investors or June 28, 2021 Deadline in Securities Fraud Class Action Lawsuit - Seite 2

On April 18, 2021, a day the market was closed, John Foley, Peloton’s Chief Executive Officer, wrote a letter that was emailed to Tread+ owners and published on Peloton’s website stating that Peloton had “no intention” to stop selling or to recall the Tread+. Following this news, Peloton’s stock price fell $16.28 per share, or more than 14%, over the next three trading days to close at $99.93 per share on April 21, 2021.

Then, on Wednesday, May 5, 2021, Peloton announced voluntary recalls of both its Tread+ and Tread treadmill machines over safety concerns. Peloton also advised customers who have the products to immediately stop using them and contact Peloton for a full refund. Peloton’s Chief Executive Officer, John Foley said in a statement, “I want to be clear, Peloton made a mistake in our initial response to the Consumer Product Safety Commission’s request that we recall the Tread+.”

On this news, Peloton’s stock price fell $14.08 per share, or 14%, to close at $82.62 per share on May 5, 2021.

The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) 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; (2) safety was not a priority to Peloton as the 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+; (3) as a result of the safety concerns, the 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 (5) as a result of the foregoing, the defendants’ statements about Peloton’s business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.

Peloton investors may, no later than June 28, 2021, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.