Peloton shares slide 5.6% premarket after it discloses subpoenas from DoJ and DHS relating to treadmill injuries
Peloton Interactive Inc.
PTON,
said Friday it has been subpoenaed by the Justice Department and U.S. Department of Homeland Security for documents relating to its reporting of injuries caused by its products. In its annual report filing with the Securities and Exchange Commission, the connected exercise-equipment company said the SEC is also investigating its public disclosures of those incidents. The U.S. Consumer Product Safety Commission warned people with children and pets not to use a treadmill made by Peloton earlier this year after a child died after being pulled underneath one. The CPSC said it had reports of nearly 40 people suffering injuries after using the treadmill. Peloton subsequently voluntarily recalled 125,000 of the treadmills. “We have also been named in several lawsuits related to these recalls,” the company said Friday. Shares were down 5.6% premarket and have fallen 25% in the year to date, while the S&P 500
SPX,
has gained 19%.
