NEW YORK, Nov. 19, 2021 /PRNewswire/ — Bernstein Liebhard, a nationally acclaimed investor rights law firm, announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired the common stock of Peloton Interactive, Inc. («Peloton») (NASDAQ: PTON) between December 9, 2020 and November 4, 2021, inclusive (the «Class Period»). The lawsuit was filed in the United States District Court for the Southern District of New York and alleges violations of the Securities Exchange Act of 1934 and SEC Rule 10b-5.
If you purchased or otherwise acquired Peloton common stock, and/or would like to discuss your legal rights and options, please visit Peloton Interactive Inc. Shareholder Class Action Lawsuit or contact Joe Seidman toll free at (877) 779-1414 or firstname.lastname@example.org.
Peloton is a fitness-equipment and media company, whose main products are internet-connected stationary bicycles and treadmills that enable monthly subscribers to remotely participate in classes via streaming media.
For most of 2020 and 2021, the COVID-19 pandemic was a boon for Peloton. Because stay-at-home orders and business closures kept many people out of the gym, the demand for in-home exercise options increased dramatically. Throughout the pandemic, including in the months leading up to the Class Period, Peloton experienced unprecedented demand for its products and services.
According to the complaint, Defendants repeatedly represented that the Company’s positive results and growth would continue after the pandemic. Defendants also allegedly 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 sustained demand.
On August 26, 2021, the Company disclosed that it had identified a material weakness in its internal controls over financial reporting «with respect to identification and valuation of inventory.» 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.
As a result of these disclosures, the price of Peloton common stock declined by $9.75, or 8.5%, from a closing price of $114.09 per share on August 26, 2021 to a closing price of $104.34 per share on August 27, 2021.
Then, on November 4, 2021, the Company 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. As a result of these disclosures, Peloton’s stock price declined by $30.42 per share, or over 35%, from a closing price of $86.06 per share on November 4, 2021, to a closing price of $43.68 per share on November 5, 2021.
If you wish to serve as lead plaintiff, you must move the Court no later than January 18, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased or otherwise acquired Peloton common stock, and/or would like to discuss your legal rights and options please visit https://www.bernlieb.com/cases/pelotoninteractiveinc-pton-shareholder-lawsuit-class-action-fraud-stock-458/ or contact Joe Seidman toll free at (877) 779-1414 or email@example.com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s «Plaintiffs’ Hot List» thirteen times and listed in The Legal 500 for ten consecutive years.
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