NEW YORK, Feb 14 (Reuters) - Peloton Interactive PTON.O on Friday won the dismissal of a proposed shareholder class action lawsuit accusing the fitness equipment maker of concealing safety-related problems that led to a May 2023 recall of 2.2 million bikes following reports of defective seat posts.
U.S. District Judge Margo Brodie in Brooklyn, New York, found no proof that Peloton intended to mislead investors by initially projecting that the recall would cost $8.4 million, before setting aside an additional $40 million three months later.
She also said Peloton's risk disclosures were not materially misleading, in part because they explicitly warned that recalls were possible.
(Reporting by Jonathan Stempel in New York; Editing by Leslie Adler)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.