Peloton has been subpoenaed by the US Department of Justice and Department of Homeland Security.- The two agencies are investigating how it reports injuries related to its products.
- Peloton recalled its treadmills in May following reports that a child died and several others were injured using the machine.
Peloton said Friday that the US Department of Justice and the Department of Homeland Security had subpoenaed it for documents and other information related to its reporting of injuries associated with its products.
The connected-fitness company voluntarily recalled its high-tech treadmills in May after consumer safety regulators issued an urgent warning to people with children at home who own the treadmill, saying they should stop using the equipment after a child died and at least 23 others were injured after being sucked under the machine.
It did not say when the subpoenas came into force. The SEC is also investigating Peloton's public disclosures regarding the injuries, Peloton said.
"On May 5, 2021, the Company announced separate, voluntary recalls of its Tread+ and Tread products in collaboration with the US Consumer Product Safety Commission and halted sales of these products to work on product enhancements," Peloton said in the filing.
"As a result of these recalls, the Company accrued for a reduction to connected fitness products revenue for actual and estimated future returns of $81.1 million for the year ended June 30, 2021," it said. It previously said that treadmill recalls could cost the company as much as $165 million total.
Peloton removed the products from sale while it worked on fixing them.
Peloton said on Tuesday it would start selling its Tread again with new safety features from August 30, but hasn't yet given a date for when its Tread+ will be available.