NEW YORK, Nov. 30, 2021 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Peloton Interactive, Inc. (“Peloton” or the “Company”) (NASDAQ: PTON). Such investors are advised to contact Robert S. Willoughby at email@example.com or 888-476-6529, ext. 7980.
The investigation concerns whether Peloton and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On August 26, 2021, Peloton disclosed, one day in advance of its announcement of the Company’s financial results for its fiscal year 2021, that “in the course of our fiscal 2021 audit process, a material weakness was identified in our internal controls over financial reporting with respect to identification and valuation of inventory.” In the Company’s Annual Report for its fiscal year 2021, filed with the U.S. Securities and Exchange Commission on Form10-K on August 27, it further disclosed that “this material weakness arose because our controls were not effectively designed, documented and maintained to verify that our physical inventory counts were correctly counted and communicated for reporting in our financial statements.”
On this news, Peloton’s stock price fell $9.75 per share, or 8.5%, to close at $104.34 per share on August 27, 2021.
Then, on November 4, 2021, Peloton disclosed that it had revised its full year revenue guidance down to a range of $4.4 to $4.8 billion due to declining demand as its customers were increasingly free to exercise outside the home. Regarding inventory, Peloton disclosed that inventory totaled $1.27 billion, a 35% increase over the prior quarter, 91% of which were “finished products” that the Company still held.
On this news, Peloton’s stock price fell $30.42 per share, or 35%, to close at $55.64 per share on November 5, 2021.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com
Robert S. Willoughby