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Lawsuits


PELOTON EXECUTIVES FACING ALLEGED INSIDER TRADING LAWSUIT FROM INVESTOR

Katie Weicher on November 28, 2022

Peloton executives (most of them former executives at this point) are facing an
alleged insider trading lawsuit from an investor regarding the selling of stock
around the time of the Tread+ recall in 2021.

Krikor Arslanian, the investor central to the complaint, is claiming that both
current and former Peloton executives sold $500 million in stock while
concealing safety issues with the Tread+. The suit specifically names 12
individuals: Erik Blachford, Karen Boone, Jon Callaghan, Jay Hoag, William
Lynch, Pamela Thomas-Graham, Howard Draft, John Foley, Tom Cortese, Jill
Woodworth, Hisao Kushi, and Mariana Garavaglia.


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We also have an in-depth article on our website. There, we also cover some
things that are missing or can be improved in future versions of the game -
including adding Apple Watch for Peloton Lanebreak (via GymKit), real time
leaderboards & head to head racing, and more. While Peloton Lanebreak won't be
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The suit alleges that these top Peloton executives were aware of safety issues
with the Tread+, but rushed to sell off stock rather than maintaining their
fiduciary responsibility to Peloton and its shareholders. The suit details the
timeline of Peloton’s communications in the spring of 2021, including their
repeated assurances that the device was safe and they did not plan to issue a
recall.

Bloomberg Law was the first to report this news, and Peloton did not respond to
their request for comment at the time of publishing. According to Bloomberg:

> The suit, originally filed under seal Nov. 18, echoes probes by the Justice
> Department and securities regulators, proposed securities class actions, and
> personal injury litigation facing the company in federal court. An earlier
> investor lawsuit seeks internal files to investigate similar concerns.

We’ve previously shared details regarding these additional inquiries, and you
can read more via our site.

The Tread+ has not been available for sale since 2021 and just last month the
Consumer Product Safety Commission (CPSC) recall was extended another year
through November 2023. According to Peloton’s most recent comments about the
CPSC recall, it appears they are working on a physical rear guard for the device
in addition to other potential new safety features.



You can read the entire complaint via Bloomberg Law.

--------------------------------------------------------------------------------

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KATIE WEICHER

Katie Weicher is a writer for Pelo Buddy. She purchased her Peloton Bike in 2016
and has been riding, strength training, and yoga flowing ever since. You can
find her on the leaderboard at #kweich.

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4/6/22 – The One Peloton Club Bike/Bike+ Rental Program is expanding
4/5 – The Peloton Guide is here and we have a first look and hands-on with the
new strength device.


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