Peloton Bats Away Investors’ Lawsuit Over Bike Safety Recall

Peloton Interactive Inc. defeated investor allegations that the fitness giant covered up safety issues with a bike seat that would lead to an expensive 2023 recall.

Peloton’s risk disclosures explicitly warned products may be impacted by defects and that could harm its business, Judge Margo K. Brodie said, dismissing the investors’ proposed class complaint Tuesday. They would only have been materially misleading if there was an adverse business impact or executives knew of one when those risk warnings were made in 2021 and 2022. But the first alleged adverse effect was in May 2023 when Peloton’s stock price began declining, ...