Peloton Leaders Face Insider Trading Claims Over Treadmills (1)

An investor sued Peloton Interactive Inc.'s current and former senior leaders, claiming some of them sold nearly $500 million in company stock while hiding treadmill safety problems that killed one child and injured dozens.

The shareholder derivative lawsuit accuses ex-CEO John Foley of selling 600,000 shares worth $77 million shortly before news broke about critical safety flaws affecting its flagship products, around the same time eight other members of Peloton’s board and management sold stock worth $417 million.

The first bloc of insider sales, worth more than $100 million, allegedly came about a week before a 3-year-old boy suffered a ...