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PTON.US
id: 666

Peloton (PTON) $13.95M Investor Settlement

$13,950,000
Cash Settlement
E.D. New York
Court
1:21-cv-02369
Case number
09/11/2020
Class period Start
05/05/2021
Class period End
05/21/2024
Claim deadline

Peloton (PTON) agreed to a $13.95M Settlement with Investors to end claims over hiding Tread+ safety issues which led to multiple incidents.

Case Details:

Peloton's Tread+ had caused a serious safety threat to children and pets, as multiple incidents of injury had occurred in addition to the tragic death of a child.

$PTON did not prioritize safety since it knew about serious injuries and deaths from the Tread+ but did not recall or suggest a halt of its use.

The Tread+ was declared a serious risk to public health and safety by the U.S. Consumer Product Safety Commission due to safety concerns, leading to an urgent recommendation for consumers with small children to cease using it.

The CPSC also found that Tread+ users faced safety threats if they lost balance.

Case Type
US Securities Class Action
Case Status
Distribution Started
Alleged Offence
Misleading Statements, 
Failure to Disclose, 
Omissions
Suspected Party
Directors, 
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.029
Filing date
04/29/2021
Lead Plaintiff Deadline
06/28/2021
Plaintiffs
Richard Neswick
Attorneys
Faruqi & Faruqi LLP (New York, NY)
Defendants
John Foley, Jill Woodworth, Hisao Kushi, Brad Olson
Judge
Hon. Carol Bagley Amon
Administrator
EPIQ
Settlement agreement date
2023-04-17
Trades matching type
FIFO

Frequently Asked Questions

Who is eligible for this settlement?

All persons who traded $PTON securities, including stocks, call, and put options, between September 11, 2020, and May 5, 2021, inclusive, and were damaged thereby, may be entitled to a payment from a class action settlement.

Do I have to sell securities to be eligible?

No, if you have purchased securities within the class period, you are eligible to participate.

You can participate in the settlement and retain (or sell) your securities.

How much will my payment be?

The final payout amount depends on your specific trades and the number of investors participating in the settlement.

If 100% of investors file their claims - the average payout will be $0.029 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $0.116 per share.

How long does the payout process take?

The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.

What is 11thestate?

11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:

  1. Prepare documents for your payout

  2. Audit the claim and make sure you get the maximum possible payout

  3. File a claim with the settlement administration

  4. Correspond with the settlement administration to resolve emerging issues

  5. Deliver payout directly to your brokerage account

There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.