Peloton Beats Investors’ Lawsuit on Bike Safety Recall For Now

Peloton Interactive Inc. escaped a stockholder lawsuit alleging the fitness giant disguised safety issues with its bike seat that would lead to an expensive 2023 recall and subscriber losses, a federal judge ruled.

Peloton’s initial statements on the potential cost of the recall of about 2.2 million bikes were forward-looking and not actionable, and a reasonable investor would’ve understood the move was voluntary in congruence with federal agency oversight, said Judge Margo K. Brodie for the US District Court for the Eastern District of New York.

Shareholders failed to allege any misleading statements in risk disclosures in the years ...