Published by Global Banking & Finance Review®
Posted on February 15, 2025
1 min readLast updated: January 26, 2026
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Peloton's shareholder lawsuit over a 2023 bike recall was dismissed. The judge found no intent to mislead investors about recall costs.
NEW YORK (Reuters) - Peloton Interactive on Friday won the dismissal of a proposed shareholder class action lawsuit accusing the fitness equipment maker of concealing safety-related problems that led to a May 2023 recall of 2.2 million bikes following reports of defective seat posts.
U.S. District Judge Margo Brodie in Brooklyn, New York, found no proof that Peloton intended to mislead investors by initially projecting that the recall would cost $8.4 million, before setting aside an additional $40 million three months later.
She also said Peloton's risk disclosures were not materially misleading, in part because they explicitly warned that recalls were possible.
(Reporting by Jonathan Stempel in New York; Editing by Leslie Adler)
The main topic is the dismissal of Peloton's shareholder lawsuit related to a 2023 bike recall.
The judge found no proof that Peloton intended to mislead investors about the recall costs.
The recall involved 2.2 million bikes due to defective seat posts.
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