Bloomberg Law
Feb. 27, 2023, 10:12 PM

Peloton Board Faces Insider Trading Suit on Pandemic Hype Claims

Mike Leonard
Mike Leonard
Legal Reporter

Peloton Interactive Corp.'s senior leaders are facing investor litigation over claims they sold $465 million worth of stock at prices inflated by a scheme to mislead the public about the sustainability of the company’s Covid-era profits.

The lawsuit targets current and ex-members of Peloton’s board and management, including its co-founders. It accuses them of spinning hype about an “organic” shift to in-home exercise despite internal indications that demand for the company’s fitness machines was falling off as the pandemic waned.

While company leaders “explained away an increase in its inventory as a sign of the insatiable and continuing demand for ...