SAN FRANCISCO, Nov. 23, 2021 /PRNewswire/ — Hagens Berman urges Peloton Interactive, Inc. (NASDAQ: PTON) investors with significant losses to submit your losses for evaluation. A securities fraud class action has been filed and certain investors may have valuable claims qualifying them to move to be a lead plaintiff.
Peloton Interactive, Inc. (PTON) Securities Fraud Class Action:
The litigation focuses on Peloton’s and managements’ statements about the sufficiency of internal controls over financial reporting and inventory valuation. But, according to the complaint, Defendants’ statements were false and misleading and/or failed to disclose that Peloton (1) was unable to accurately ascertain inventory levels, (2) was unable to match supply and demand for Peloton’s products, and (3) had a massive inventory that exceeded customer demand.
Investors began to learn the truth on Aug. 26, 2021, when Peloton announced it had material weaknesses in internal controls over financial reporting with respect to identification and valuation of its inventory.
Then, on Nov. 4, 2021, Peloton announced its Q1 2022 financial results. Among other things, the results included a massive $1.27 billion or 35% increase in unsold inventory compared to the prior quarter. The company also slashed its FY 2022 revenue guidance by as much as $1 billion, or down about 18%. Management blamed these matters on the COVID-related exit that allowed its customers to more frequently exercise out of their homes and on the company’s limited visibility into future performance.
These events sent the price of Peloton shares sharply lower.
“We’re focused on recovering investors’ losses and proving Peloton lied about its inventory valuation,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Peloton and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Peloton should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email mailto:PTON@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national law firm with eight offices in eight cities around the country and over eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 844-916-0895
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SOURCE Hagens Berman Sobol Shapiro LLP