A federal judge in New York has dismissed a shareholder class action lawsuit against Peloton that accused the fitness company of intentionally misleading investors who lost money when the company’s stock price plunged after the pandemic. The suit was a consolidation of several shareholder lawsuits filed against the company and its former management. The court found that the examples of material misstatements cited by the plaintiffs were forward-looking statements covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and that Peloton included “meaningful cautionary language” in its projections. Essentially, the court found that Peloton had adequately warned investors that its superior pandemic results might not continue.

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