On Friday, the fitness equipment manufacturer Peloton said that it has been subpoenaed by both the Department of Justice (DOH) and the Department of Homeland Security (DHS) for documents and information that was related to the injuries suffered by users of its treadmills. It also said that it was under investigation by the Securities and Exchange Commission (SEC), in a filing with the SEC, on Friday, for its public disclosures that are related to those injuries.
In May, Peloton had recalled its popular Tread and Tread+ after a child had died in an accident involving its treadmill. Earlier, beginning in spring, dozens of people had suffered injuries and accidents while using these machines. Some users also complained that pets suffered injuries and more including a pet getting sucked into under the machine while it was activated.
Although the injuries and accidents had been reported much earlier the company kept insisting that its treadmills did not pose dangers. It resisted the calls of regulators, politicians and users who were saying that injuries and accidents were a result of flawed equipment. The company’s was hesitant to recall its treadmills.
In mid-April the Consumer Product Safety Commission, which is a watchdog group, cautioned people not to use the Tread+ from Peloton and posted an urgent warning that it was a serious risk and had injured pets and children. It asked users who had children to stop using the product immediately.
The company is also facing individual lawsuits from users after its recall.
The fitness equipment manufacturer said that it would cooperate with all the investigations. It said that as of now it was unable to predict the eventual scope, duration or outcome of the investigations.
Peloton became extremely popular and was much in demand during the pandemic as people were unable to visit gyms and its fitness equipment both the Tread and Tread+ saw huge sales with demand more than supply. However, the equipment also caused accidents and injuries.
Peloton shares fell by 25 percent this year to date. The company’s market cap is at $34 billion. Peloton was contacted by several agencies including CNBC and Gizmodo, but its spokesperson has not responded when asked for additional comment.
Photo Credit Peloton