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The U.S. Department of Justice and the Department of Homeland Security subpoenaed the company for documents and information over injuries from its exercise machines, the company said in a filing with the U.S. securities regulator https://
The disclosure is the latest setback for Peloton (NASDAQ:PTON) over its treadmills, which were recalled in May.
The company initially said in April there was no reason to stop using the Tread+ machines, and its Chief Executive Officer John Foley publicly apologized for its early response to the reports.
Peloton disclosed on Friday the U.S. Securities and Exchange Commission was also investigating the company’s public disclosures related to the injuries, and that it had been named in several lawsuits associated with the recalls.
“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,” the company said.
The fitness equipment maker benefited last year from a home fitness boom as the pandemic forced gyms to stay shut.
Peloton said late on Thursday its near-term profitability would be affected due to a decision to slash the price of its exercise bike and higher commodity and marketing costs.
The company also introduced monthly financing options for some of its products across all regions, as it looks to prevent a slowdown in its business.
Peloton’s shares were down nearly 8% at $105.20 in premarket trading on Friday.
