Fired Peloton instructor who earned $260,000 a year sues firm for $1.8m after executive made fun of his Irish accent and asked if he was drunk at work - after he was ridiculed for not wanting COVID vaccine

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A former Peloton trainer is suing the fitness company claiming an executive made fun of his Irish accent and asked if he was drunk at work, before firing him last month.

Daniel Patrick McKenna, 30, became Peloton's first Irish instructor in December 2021 after gaining a following on social media for his fitness routines during the COVID pandemic.

He became one of the most popular instructors for Peloton, earning $260,000 a year, but soon found himself repeatedly ridiculed by the company's Chief Content Officer, Jennifer Cotter, a lawsuit filed in the New York State Supreme Court on Wednesday alleges.

It claims Cotter made fun of his Irish accent and would begin staff meetings asking if he was drunk due, an apparent reference to his Irish heritage, causing him anxiety and forcing him to start counseling.

She also allegedly disparaged McKenna for refusing to get the COVID vaccine shot after undergoing an unexpected surgery. 

McKenna was then fired from his position at the company shortly after he returned to work from a short hiatus to recover from a second surgery.

The company wrote in a Facebook statement at the time: 'Daniel McKenna is no longer a Peloton instructor.

'His classes will remain in our library for our Members to enjoy,' it said. 'We wish Daniel all the best in his next chapter.

But McKenna now says he was fired due to 'actual disability and perceived disability-based discrimination,' according to the suit, after already facing a 'hostile work environment.'

McKenna is seeking damages of at least $1.8 million from the troubled company.

That includes $500,000 in back pay, front pay and benefits; $300,000 in compensatory damages and $1 million in punitive damages 'in order to compensate him for the injuries he has suffered and to signal to other employers that discrimination is repulsive.'

It is just the latest in a string of bad news for the once-popular company, which is also being sued for alleged insider trading practices.

DailyMail.com has reached out to Peloton for comment. 

David Patrick McKenna, 30, left has filed a wrongful termination suit against Peloton, which accuses Chief Content Officer Jennifer Cotter, right, of disparaging him and making fun of his Irish accent

The company vaguely announced his departure on September 12, when he was fired

The wrongful termination lawsuit filed late Wednesday claims that Peloton executives 'willfully and knowingly' violated anti-discrimination statutes after they found out McKenna suffered an unexpected pectoral injury, suggesting it provided them with the leverage to fire him despite his popularity.

The suit claims that McKenna had built up a reputation during the global COVID-19 pandemic as a personal instructor and fitness professional, garnering hundreds of new followers on social media at the time.

Peloton executives then sought out a contract with him, and he was officially hired on December 14, 2020, with his first classes beginning the following August.

'In less than a year, Plaintiff's class and coaching attendance at Peloton ranged from 400 to 1,000  attendees for his popular classes — indicative of his success as a Peloton instructor,' the suit states.

'Peloton subscribers attending Plaintiff's classes regularly posted how much they love his classes; Plaintiff's direct and encouraging style and teaching methodology led to many followers achieving their fitness goals.'

Eventually, the lawsuit claims, McKenna even earned the praise of then-CEO John Foley.

But after he filed a medical exemption to the COVID vaccine in October 2021, the suit claims, Cotter began making 'disparaging and denigrating remarks' and 'categorically denied listening or exploring the potential for a medical exemption.'

McKenna tried to explain to her that he feared the vaccine could impede his recovery or have an otherwise adverse effect on his health, the suit claims, but his arguments were unsuccessful.

He ultimately decided to get the vaccine 'in fear of disrupting his career and/or employment with Peloton,' the suit states, after which Cotter made him quarantine for 14 days even though he continued to test negative.

At that point, the lawsuit claims, McKenna first hired a 'mental wellness professional to facilitate reducing his stress, humiliation, anxiety and insomnia triggered by the hostility he faced' from Cotter.

Still, it says, she continued to make fun of him, making fun of his Irish accent and nonchalantly asking him at meetings whether he was drunk.

McKenna had been celebrated as Peloton's first Irish instructor when he started classes in August 2021

McKenna reportedly became one of the most popular instructors for the company, gaining many new followers on social media when he worked for Peloton and receiving a lot of praise

In some cases, the suit says, Cotter would 'belittle' McKenna as soon as he joined a Peloton staff meeting, saying 'I hope you are not drunk, Daniel,' or even telling him to 'behave yourself' or 'don't be foolish.'

In at least one instance, it states, Cotter told him, 'Nobody understands what you are saying, Daniel,' when referring to his Irish accent.

She even allegedly humiliated McKenna at his first meeting with the company's new CEO, Barry McCarthy, by saying 'I hope you're not drunk Daniel,' before telling McCarthy: 'That's Daniel, our Irish instructor, he's rough 'round the edges and hard to understand, but our members love him.'

After a while, the lawsuit says, McKenna decided to speak to Cotter about his treatment there, saying she should stop 'the continuous disparaging and derogatory remarks about his ethnic background and alcohol-related stereotypes.'

 'Defendant Cotter unapologetically stated that she was mostly joking,' the suit claims.

It goes on to claim that the stress from the job, as well as the physical demands of it, caused him to tear his pectorals in the Spring of 2022.

He underwent surgery for the tear on April 25, the suit states, telling the executives at the company shortly thereafter that he was pursuing extensive physical therapy and holistic treatments, and should be able to return to work on July 1.

But just before he was set to return, Cotter and other executives allegedly scheduled a meeting with him on June 23, at which Cotter 'alarmingly and confusingly informed Plaintiff that Peloton could fire him for going on short-term disability, but would allow him to resume employment.

It was clear from that meeting, though, that McKenna was on thin ice, according to the suit.

Still, he continued to focus on his classes and 'continued to see growth in his followers' until he was told on September 12 that he was fired.

The suit says the company 'failed to provide any written notice, factual description or basis for any violations that Plaintiff did not perform his duties ably and was subject to termination with cause.'

In the aftermath, the suit claims, McKenna was restricted in what he could do due to a non-compete clause in his contract with Peloton that 'illegally mandates that he is unemployed and uncompensated for 18 months under Peloton's restrictive covenants.'

Peloton sales had boomed during the COVID pandemic, when people were forced to stay home

Shares of the once-popular fitness company are now selling at just $8.13, down more than 90 percent from last year

The lawsuit comes as the company continues to reel from a string of bad news, with shares now selling at just $8.13, down more than 90 percent from last year.

Its sales had boomed during the COVID pandemic, when people were forced to stay home.

But it soon faced scandals about the safety of its products after a child died and their treadmills had to be recalls, as well as bad publicity from a much-mocked Christmas advertisement, and Sex and the City's male lead Mr. Big dying from a heart attack following a Peloton class.

Now, the company is also being sued by its largest investor, Blackwells Capital LLC, which is accusing its top executives of selling off $500 million worth of shares before prices started to tank. 

The suit filed in the Court of Chancery of the State of Delaware claims that former CEO John Foley and other members of the company's board of directors 'profited mightily' by selling portions of their Peloton shares 'immediately before Peloton's major stock price decline began.'

Still, those executives continue to wield the voting power at the once-popular fitness company, Blackwells claims, even after Foley, 51, stepped down from the board last month.

The investment management firm — Peloton's largest shareholder — is now asking a judge to force Peloton to turn over all of its financial records, restructuring plans, forecasts and board communications from April 17, 2020 through the present.

When Blackwells previously asked company executives for these documents, the lawsuit states, the company asked its executives to sign a non-disclosure agreement saying it would not reveal what it saw to other shareholders.

The firm now alleges that the documents will prove that Foley and other executives knew about the 'myriad of wide-ranging problems the company is facing' when they sold their shares, despite making public statements saying the company is rebounding. 

DailyMail.com has also reached out to Peloton for comment about that suit.

Blackwells Capital LLC has now filed a suit claiming former CEO John Foley, pictured, engaged in insider trading by selling more than $100m worth of his stocks before shares plummeted

Blackwell's suit came as it was revealed that Foley pledged at least 3.5 million shares of the company — worth an estimated $300 million — for personal loans from Goldman Sachs when he was an executive in the company.

 But when the stock prices declined, Foley faced repeated calls to put up fresh funds or additional collateral for the loans, as the shares' value dropped 10 percent to just $30million, the Wall Street Journal reported Tuesday.

He has since stepped down from his position on the board of the company he founded a decade ago, providing him with flexibility to sell or pledge more Peloton shares to the banking giant — though Foley insists that is not the reason he left.

Foley was instead able to secure private financing to avoid stock sales by Goldman after he listed his East Hampton oceanfront mansion for sale and sold his Manhattan penthouse.   

'I didn't resign from the board because I was underwater,' he told the Journal. 'To the extent that I took on debt through Goldman, it was because I am bullish on Peloton and still am. It was, and is, a great company.' 

Foley also faced repeated calls from Goldman Sachs to put up more collateral for his personal loans as his stocks plummeted

Foley and his wife Jill are reportedly quietly seeking a private buyer for their sprawling East Hamptons compound for less than they bought it

They purchased the home, on a spacious four-acre oceanfront lot, in December for $55 million, which was $2.5 million above the asking price

Foley's Manhattan penthouse apartment (pictured) is also under contract

 But the company is reporting six straight quarters of losses and is reportedly considering merging with other companies or even being bought out — which CEO Barry McCarthy hinted at earlier this month as he laid off some 500 workers. 

He said in an internal memo to employees, obtained by the Wall Street Journal: 'I know many of you will feel angry, frustrated, and emotionally drained by today's news, but please know this is a necessary step if we are going to save Peloton, and we are.'

McCarthy also told the Journal: 'There comes a point in time when we've either been successful or we have not.

'We need to grow the business to a sustainable level,' he said. 

 It remains unclear what would happen to its bikes, treadmills and other equipment if that were to happen.

The new CEO, Barry McCarthy has hinted at the possibility of merging with another company or being bought out. He is pictured here in July

Still, McCarthy seemed optimistic about the future of the company.

The CEO told the Wall Street Journal that they had significantly cut losses through its massive layoffs and the outsourcing of manufacturing.

Peloton also reportedly ended June with $1.25 billion in cash reserves and a $500 million credit line.

And more recently, company executives announced that they would be installing Peloton bikes in Hilton hotels around the country in a major push to create buzz and sell more products.

Betsy Webb, global vice president of Peloton's commercial branch, said she first used a Peloton while staying at a hotel and that she was 'immediately hooked.' 

'We recognize the importance for our members to maintain their wellness routines while on the road, with data showing over 1.6 million Peloton rides completed globally on Peloton Bikes in hotels in the past year,' Webb said.

'So, we are thrilled to be working with Hilton, allowing us to meet the needs of our current members, while also enabling potential new members to experience Peloton for the first time.'

These recent moves by Peloton hope to revitalize growth within the company.

Peloton's two years of disasters

March 2021: Peloton warns parents to keep children away from its Tread+ treadmills after a six year old child is killed after being pulled underneath one of them

May 2021: Peloton recalls the running machines after reports of at least 72 other injuries emerge. Class action lawsuits against the company are filed

June 2021: Firm is accused of greed after disabling 'Just Run' feature on Tread+ which lets users run for free, instead forcing them to pay a $39 fee. Brought the free option back after an outcry

August 2021: Peloton slashes cost of its entry-level bike by $400 as revenue growth slows 

November 2021: Peloton reports sales of its products fell by 17 percent for the most recent quarter, with the smallest gain in subscribers since going public in September 2019. That saw Peloton's market cap tumble by $8 billion, and John Foley lose his billionaire status 

December 2021: Mr Big - played by Chris Noth - dies of a heart attack after using a Peloton in the Sex and the City reboot And Just Like That. Shares continue to drop. Days later, Peloton is hailed for producing an advert featuring the revived character joking about the exercise bike. But it is forced to pull the hailed commercial after Noth is hit by multiple claims of sexual assault, which he denies 

Firm hit by fresh scandal after John Foley hosts lavish Christmas party for select employees, after annual bash was scrapped for rank-and-file staff 

Chris Noth, who plays Mr Big in Sex and the City, dies from a heart attack after using his Peloton

January 2022: Leaked audio reveals plans to fire 41% of sales and marketing teams. Stock price tumbles further after it emerged production of bikes and treadmills would be slowed due to sinking demand.

Calls for Foley to be fired emerge.

The PR gets even worse as another TV character is almost killed off from a heart attack after a Peloton session. Showtime's popular series Billions used the bikes to give Mike Wagner, played by David Costabile, a scare in the season six premiere. He survives, and declared he is not going to die 'like Mr Big'

Mike Wagner, played by David Costabile, is seen in the Season 6 premiere of Showtime’s Billions having a heart attack after riding a Peloton bike

February 2022: Executives at Peloton alleged to have hatched a plan to conceal rust and corrosion on their high-end bikes with a chemical solution.

When staff noticed that paint was flaking off some of the machines last year the company allegedly began using a chemical solution that disguised corrosion on the bikes by 'reacting with the rust to form a black layer', according to the Financial Times.

May 2022: Peloton's stocks plummet nearly 90 percent over the past year, as company executives revealed that it lost a staggering $750 million in the previous quarter due to unsold inventory and mounting costs. 

The company lost $757.1 million for the three months of 2022, amounting to about $2.27 per share. And when stripping out nonrecurring items from the equation, a survey by Zacks Investment Research, it lost 98 cents per share - outpacing projections of a per-share loss of 85 cents. 

August 2022: Company announces it is slashing 784 jobs, increasing equipment prices, closing retail locations, and requiring employees to return to the office by November, as they try to secure their bottom line.

Peloton reports a huge $1.2 billion loss, its sixth consecutive quarter of reported losses, sending shares tumbling 15 percent.