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Allegations
The filed complaint alleges that Peloton Interactive, Inc. made materially false and/or misleading statements and/or failed to disclose that: (i) the seat posts for certain of the Company’s Peloton Bikes were prone to break or otherwise detach during use, rendering them unsafe for users; (ii) as a result, the Company was likely to recall millions of Peloton Bikes; (iii) accordingly, Peloton overstated its efforts to enhance the safety of its products, understated its estimated future returns, and downplayed the Company’s need to book additional reserves for future product recall expenses; (iv) all the foregoing, once revealed, was likely to negatively impact the Company’s business and financial results and reputation; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.