Philadelphia, Pennsylvania--(Newsfile Corp. - May 13, 2021) - Berger Montague is investigating securities fraud claims against Peloton Interactive, Inc. ("Peloton" or the "Company"). The Firm is investigating these claims on behalf of investors who purchased Peloton securities (NASDAQ: PTON) between September 11, 2020 and May 5, 2021 (the "Class Period").
If you purchased Peloton securities during the Class Period, would like to discuss Berger Montague's investigation, or have questions concerning your rights or interests, please contact attorneys Andrew Abramowitz at email@example.com or (215) 875-3015, or Donnell Much at firstname.lastname@example.org or (215) 875-4667, or fill out the contact form on www.bergermontague.com/peloton.
Whistleblowers: Anyone with non-public information regarding Peloton are encouraged to confidentially assist Berger Montague's investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.
According to a recent lawsuit, throughout the Class Period, Peloton and senior management misled investors about the seriousness of the safety risks posed to children and pets by its Tread+ treadmill. Indeed, Defendants allegedly knew of numerous incidents in which serious injuries and death resulted from the Tread+ yet failed to recall the product.
On April 17, 2021, the U.S. Consumer Product Safety Commission ("CPSC") issued a press release warning "consumers about the danger of popular Peloton Tread+ exercise machine after multiple incidents of small children and a pet being injured beneath the machines. The [CPSC] has found that the public health and safety requires this notice to warn the public quickly of the hazard." The CPSC further stated that it "is aware of 39 incidents including one death…. In light of multiple reports of children becoming entrapped, pinned, and pulled under the rear roller of the product, CPSC urges consumers with children at home to stop using the product immediately."
On April 18, 2021, Peloton CEO John Foley issued a statement indicating that Peloton had "no intention" to stop selling the Tread+ or to issue a recall. Following this news, Peloton's stock price fell $16.28 per share - more than 14% - over the next three trading days to close at $99.93 per share on April 21, 2021.
Finally, on May 5, 2021, Peloton announced voluntary recalls of its Tread+ and Tread treadmill machines over safety concerns. Defendant Foley stated: "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.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Andrew Abramowitz, Senior Counsel
Donnell Much, Associate
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