Peloton Interactive must face a lawsuit claiming it defrauded shareholders by masking excess inventory of its home exercise equipment as the worst of the COVID-19 pandemic passed, a divided federal appeals court ruled on Wednesday. Reversing a lower court ruling, the 2nd U.S. Circuit Court of Appeals in Manhattan said shareholders can try to prove that the maker of stationary…
U.S. District Judge Andrew L. Carter Jr. has dismissed with prejudice securities claims against the exercise technology company Peloton in the Southern District of New York, concluding that statements made about the company’s postpandemic growth were true and protected under federal law. The opinion, issued Monday, ends nearly three years of stock-price drop litigation which shareholders filed after Peloton’s 2021 announcement…
Since the initial outbreak of COVID-19 in the U.S. in March 2020, there have been scores of COVID-related securities suit filed. However, as the pandemic itself progressed, the nature of the lawsuits being filed also changed. Over time, the plaintiffs’ lawyers began targeting companies that had initially prospered at the outset of the pandemic, but whose fortunes flagged as circumstances…