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Peloton Sued Over Post-Covid Stock Crash, Insider Trading Fears

Oct. 4, 2022, 3:52 PM

A private equity firm sued Peloton Interactive Inc. in Delaware over concerns that its leaders made $500 million in insider sales—shortly before its stock value went into free fall—at prices inflated by their false assurances that the company’s soaring success in 2020 wasn’t about the pandemic.

The lawsuit seeks internal files from Peloton to investigate allegations that senior members of its board and management sold shares worth tens of millions each, or more, “immediately before” a 96% stock crash starting in early 2021.

The 18-month plunge from $167 a share to $7 appears to have stemmed from Peloton’s “inability to ...