Peloton Interactive, Inc. announced a proposed settlement in several stockholder derivative actions, including cases in the U.S. District Court for the Eastern District of New York and the Delaware Court of Chancery. The settlement agreement, dated November 15, 2024, involves the adoption, implementation, and maintenance of certain corporate governance enhancements by Peloton. All parties involved agree that these enhancements confer substantial benefits upon the company.
As part of the settlement terms, the defendants' insurers will pay Plaintiffs' Counsel's attorneys' fees, costs, and expenses totaling $1,750,000, subject to Court approval. A Final Settlement Hearing is scheduled for June 13, 2025, at 11:00 a.m. before the Honorable Carol Bagley Amon at the U.S. District Court for the Eastern District of New York.
The settlement resolves derivative claims brought on behalf of and for the benefit of Peloton, meaning the benefits will go directly to the company. Individual Peloton stockholders will not receive any direct monetary payment from this settlement. Stockholders who were owners of Peloton common stock as of November 15, 2024, have the right to appear and be heard at the hearing if they file a written notice of objection by May 30, 2025.
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