Case Background:
This is a federal securities fraud class action lawsuit on behalf of those who purchased or otherwise acquired Peloton Interactive, Inc. (“Peloton”) (NASDAQ: PTON) securities between February 5, 2021 and January 19, 2022, inclusive (the “Class Period”).
Peloton provides interactive fitness products such as the Peloton Bike and the Peloton Tread+ and Tread, which include touchscreens that stream live and on-demand classes. Peloton also provides connected fitness subscriptions and access to all live and on-demand classes. Peloton launched the Tread+ treadmill in 2018. At that time, it was called the “Tread.” Peloton renamed its signature treadmill in September 2020 to “Tread +.”
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 United States Consumer Product Safety Commission (“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; (5) Tread featured similar safety concerns; (6) merely reinforcing safety warnings would be insufficient; (7) the CPSC and Peloton would issue a recall of the Tread+ and Tread; and (8) 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.
Current Status of Case:
On September 30, 2024, the Court granted Defendants’ Motion to Dismiss. Plaintiffs appealed the District Court’s decision to the United States Court of Appeals for the Second Circuit on October 21, 2024. On August 27, 2025, the Second Circuit vacated the decision of the District Court and remanded the case for further proceedings. This action is ongoing.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.