Kirby McInerney LLP | Financial Litigation Law Firm | <h3 >Peloton Interactive, Inc.</h3 >
This links to the home page
Cases
PRACTICE AREAS

Peloton Interactive, Inc.


The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired Peloton Interactive, Inc. (“Peloton” or the “Company”) (NYSE: PTON) common stock from December 9, 2020 through November 4, 2021, inclusive (the “Class Period”). Investors have until January 18, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
 
Headquartered in New York, New York, Peloton offers interactive, internet-connected exercise equipment, including bicycles and treadmills designed and marketed for use in customers’ homes, along with subscriptions that allow users to access exercise classes while using their Peloton equipment or with their own home equipment. 
 
On August 26, 2021, after the market closed, when Peloton disclosed, one day in advance of its announcement of the Company’s financial results for its fiscal year 2021, that “in the course of our fiscal 2021 audit process, a material weakness was identified in our internal controls over financial reporting with respect to identification and valuation of inventory.” In the Company’s Annual Report for its fiscal year 2021, filed with the SEC on Form 10-K on August 27, it further disclosed that “this material weakness arose because our controls were not effectively designed, documented and maintained to verify that our physical inventory counts were correctly counted and communicated for reporting in our financial statements.” On this news, Peloton’s stock price declined by $9.75 per share, or approximately 8.5%, from $114.09 per share to close at $104.34 per share on August 27, 2021.
 
On November 4, 2021, after the market closed, Peloton shocked investors when it disclosed that it had revised its full year revenue guidance down to a range of $4.4 to $4.8 billion dollars due to declining demand as its customers were increasingly free to exercise outside the home. And regarding inventory, Peloton disclosed that inventory totaled $1.27 billion, a 35% increase over the prior quarter, 91% of which were “finished products” that the Company still held. On this news, Peloton’s stock price declined by $30.42 per share, or approximately 35.3%, from $86.06 per share to close at $55.64 per share on November 5, 2021.
 
The lawsuit alleges throughout the Class Period, Defendants repeatedly, falsely assured investors that the Company’s positive results and growth would continue after the pandemic. In addition, during the Class Period, Defendants made false and misleading statements about the amount of inventory that Peloton held, and touted the Company’s ability to keep its inventory levels in line with substantial, sustained demand. As a result of Defendants’ misrepresentations, Peloton common stock traded at artificially inflated prices during the Class Period.
 

Peloton Interactive, Inc. Investor Contact Form