U.S. regulators are investigating Peloton following multiple reports of injuries and the death of a child involving the company's treadmills.
Peloton, the largest interactive fitness platform in the world, said Friday that it has been subpoenaed by the U.S. Department of Justice and the Department of Homeland Security for documents related to the accidents.
Peloton also said it is being investigated by the Securities and Exchange Commission over its public disclosures related to the accidents.
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"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," Pelton said in a statement.
The company in May issued a recall for both of its treadmill models, the Tread and the Tread+, after receiving a number of reports of injuries associated with the equipment, one of which led to the death of a child.
In all, Peloton received 72 reports of adults, children, pets and objects being pulled under the rear of the treadmill, including 29 reports of injuries to children who suffered broken bones and lacerations. The child who died was 6-years-old.
The treadmills were sold from September 2018 through April 2021 for about $4,295. Consumers have until November 6, 2022 to get a full refund from Peloton.
The U.S. Consumer Product Safety Commission issued a warning to consumers in April about the safety hazards associated with Peloton's treadmills. The warning advised people with children and pets to immediately stop using the treadmills after a child was pulled under one and died. The CPSC is continuing to investigate the matter.
Peloton initially pushed back against the safety commission, saying the warning was "inaccurate and misleading." At the time, CEO John Foley said he had "no intention" of recalling the treadmills. Weeks later he issued an apology, saying the company "made a mistake" in its initial response.
Peloton also said Friday it has been named in several lawsuits associated with the recalls.
"In addition to the CPSC investigation and other regulatory investigations, we are presently subject to class action litigation and private personal injury claims related to these perceived defects in the Tread+ and incidents reported to result from its use," the company said.
The news comes a day after the company reported a net loss of $313.2 million in the quarter that ended June 30. That compared to a profit of $89.1 million the same period last year, the Associated Press reported.
The company also announced on Thursday it is cutting the price of its popular Peloton Bike from $1,895 to $1,495 in an effort to reach new users.
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