Feds subpoena Peloton over reporting of treadmill injuries, SEC probing
Peloton revealed Friday that the US Department of Justice and the Department of Homeland Security have subpoenaed the company for documents and other information related to the reporting of customer injuries.
Additionally, the company disclosed that the Securities and Exchange Commission is investigating public disclosures over the reported injuries and Peloton or executives of the company are currently named in at least six lawsuits related to the matter.
In May, Peloton issued a sweeping recall for more than 126,000 of its treadmills after US regulators said people have been hurt using the machines and one child has died.
The recall covered both the company’s cheaper $2,495 model treadmill and its $4,295 Tread+.
“Litigation, regulatory proceedings, such as the investigations described above, as well as related personal injury or class action claims and lawsuits, and securities and intellectual property infringement matters that we are currently facing or could face, can be protracted and expensive, and the results are difficult to predict,” the company said in a filing with the SEC.
The company added that “even if these matters are resolved in our favor or without significant cash settlements, these matters, and the time and resources necessary to litigate or resolve them, could harm our business, financial condition, and operating results.”
“We intend to cooperate fully with each of these investigations, and at this time, we are unable to predict the eventual scope, duration or outcome of the investigations,” Peloton said.
Representatives for the DOJ and DHS did not immediately return The Post’s request for comment on the investigation.
Peloton said they can’t comment on “active litigation.”
An SEC spokesman said the agency “does not comment on the existence or nonexistence of a possible investigation.”
Shares of Peloton were down about 7 percent in premarket trading Friday, after it also reported fiscal fourth-quarter earnings Thursday evening.
Peloton’s earnings report showed mounting costs, slowing revenue growth and a widening loss. The company also slashed the price of its original and cheaper stationary cycle from $1,895 to $1,495.
