Peloton wins dismissal of shareholder lawsuit over post-pandemic outlook

Carter said Peloton repeatedly warned investors that the pandemic was "uncharted territory" that made projecting inventory needs difficult. He found insufficient proof that top executives believed in August 2021 that the company had too much inventory.

• The judge also rejected shareholders' argument that the executives prematurely canceled trading plans to sell stock at pre-arranged intervals, known as 10b5-1 plans, to avoid selling shares at depressed prices after disclosing bad financial news.
• Such behavior was not suspicious, the judge said, because it suggested that the executives "did not rush to cash out."
• Carter dismissed an earlier version of the lawsuit in September 2024. The federal appeals court in Manhattan revived part of the case last August.
• Peloton's share price has fallen more than 96% since early 2021.