Peloton Board Nomination Bylaw Hit With Shareholder Challenge

An investor is suing Peloton Interactive Inc. and members of its board, challenging a bylaw covering director nominations at the fitness company.

The lawsuit, filed in Delaware, targets a rule requiring stockholders seeking board seats to disclose any other investors “acting in concert” with them. The company’s definition of “acting in concert” is so broad that it makes the provision “virtually impossible” to comply with, according to the proposed shareholder class action.

The shareholder suit is one of several in recent years taking aim at advance-notice bylaws and the ways they’re enforced by boards seeking to kneecap activist investors who ...