Peloton revealed Friday that the U.S. Department of Justice and Department of Homeland Security have cited the company for documents and other information related to notifying customers of injuries.
In addition, the company revealed that the Securities and Exchange Commission is investigating public disclosures about the reported injuries and that Peloton or the company’s executives are appointed on at least six lawsuits related to the matter.
In May, Peloton issued a wide-ranging record of more than 126,000 of its treadmills after U.S. regulators said people had been injured by the machines and a child had died.
The withdrawal covered both the company’s cheapest $ 2,495 model belt and its $ 4,295 tread.
“Litigation, regulatory procedures, such as the investigations described above, as well as claims and claims related to personal injury or related class actions, and matters related to the infringement of values and intellectual property that we are facing or that we could face, they can be protracted and costly. the results are difficult to predict, “the company said in a presentation to the SEC.
The company added that “even if these matters are resolved in our favor or without significant cash settlements, these matters, and the time and resources required to litigate or resolve them, could harm our business, the our financial situation and operating results “.
“We intend to fully cooperate with each of these investigations and, at this time, we cannot predict the scope, duration or outcome of the investigations,” Peloton said.
Representatives from the DOJ and DHS did not immediately return The Post’s request for comment on the investigation.
Peloton said they cannot comment on “an active litigation.”
An SEC spokesman said the agency “does not comment on the existence or non-existence of a possible investigation.”
Shares of Peloton fell about 7 percent in the premature trade on Friday, after it also reported fourth-quarter tax gains on Thursday evening.
Peloton’s profit report showed rising costs, slowing revenue growth and increasing loss. The company also reduced the price of its original and cheaper stationary cycle from $ 1,895 to $ 1,495.
