Platoon summoned by DOJ and DHS for treadmill injuries

Platoon summoned by DOJ and DHS for treadmill injuries

A detailed photo shows the Peloton Trade treadmill running platform during CES 2018 at the Las Vegas Convention Center on January 11, 2018 in Las Vegas, Nevada.

Ethan Miller | Getty Images

Peloton said on Friday that the US Department of Justice and Homeland Security summoned the fitness equipment maker to obtain documents and other information relating to injuries reported by Peloton customers.

In May, Peloton released a full recall for its two treadmills, the Tread and Tread +, after a crash killed a child and dozens of other users reported injuries.

In a filing Friday with the Securities and Exchange Commission, Peloton said he was under investigation for public disclosures related to the injuries. The company also said it has been named in several lawsuits related to the recall.

Peloton shares were down nearly 7% pre-market on Friday after a disappointing fourth quarter financial report.

Peloton said he intended to cooperate with every investigation. “At this time, we are unable to predict the scope, duration or end result of the investigation,” the company said.

On Thursday, Peloton announced that it is reducing the price of its original bike for the second time, reducing the cost by about 20% to $ 1,495. In doing so, the company said it hopes to reach new customers who were unable to purchase their bikes sooner.

Peloton shares have fallen about 25% to date, bringing the company’s market cap to $ 34 billion.

Get Peloton’s full SEC file here.



Please enter your comment!
Please enter your name here