Shareholders Foundation, Inc.

Peloton Interactive, Inc. (NASDAQ:PTON) Investor Lawsuit Alleges Misleading Statements

A lawsuit was filed on behalf of investors in Peloton Interactive, Inc. (NASDAQ:PTON) shares over alleged securities laws violations.


San Diego, CA -- (SBWIRE) -- 12/07/2021 -- An investor, who purchased shares of Peloton Interactive, Inc. (NASDAQ: PTON), filed a lawsuit alleged violations of Federal Securities Laws by Peloton Interactive, Inc.

Investors who purchased shares of Peloton Interactive, Inc. (NASDAQ: PTON) have certain options and for certain investors are short and strict deadlines running. Deadline: January 18, 2022. NASDAQ: PTON investors should contact the Shareholders Foundation at or call +1(858) 779 - 1554.

For most of 2020 and 2021, as the COVID-19 pandemic and related stay-at-home orders and business closures largely kept individuals out of the gym, the demand for in-home exercise options increased dramatically and Peloton experienced unprecedented demand for its products and services.

Then on August 26, 2021, Peloton Interactive, Inc. disclosed that it had identified a material weakness in its internal controls over financial reporting "with respect to identification and valuation of inventory." In its Annual Report filed with the SEC on Form 10-K on August 27, Peloton explained 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." However, at the same time that Peloton disclosed the weakness in its internal controls, Defendants continued to misrepresent and conceal the unsustainable nature of Peloton's financial results and growth post-COVID, issuing guidance of $5.4 billion of total revenue for fiscal year 2022, representing 34% year-over-year growth.

Then, on November 4, 2021, Peloton Interactive, Inc. announced second quarter financial results that fell far short of expectations and reduced its total revenue guidance for fiscal 2022 by a staggering $1 billion. Peloton further disclosed that inventory had skyrocketed to $1.27 billion, 91% of which comprised "finished products" that the Company still held. On Peloton's November 4 earnings conference call with investors, Defendants admitted that Peloton overestimated demand and underestimated the impact of gyms reopening as the pandemic subsides.

Shares of Peloton Interactive, Inc. (NASDAQ: PTON) declined from $127.57 per share in July 2021, to as low as $40.84 per share on December 6, 2021.

The plaintiff claims that between December 9, 2020 and November 4, 2021, the Defendants repeatedly, falsely assured investors that the Company's positive results and growth would continue after the pandemic, that the 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 and that as a result of Defendants' misrepresentations, Peloton common stock traded at artificially inflated prices between December 9, 2020 and November 4, 2021.

Those who purchased shares of Peloton Interactive, Inc. (NASDAQ: PTON) have certain options and should contact the Shareholders Foundation.

Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.