A detailed plan shows the running cover of a Peloton Tread treadmill during CES 2018 at the Las Vegas Convention Center on January 11, 2018 in Las Vegas, Nevada.
Ethan Miller | Getty Images
Peloton said Friday that the U.S. Department of Justice and the Department of Homeland Security have summoned the fitness equipment manufacturer to obtain documents and other information related to injuries reported by Peloton customers.
In May, Peloton posted a widespread withdrawal for the two treadmill machines, the treadmill and treadmill +, after a child died in an accident and dozens of other users reported injuries.
However, for weeks, Peloton resisted remembering the machines, despite calls from regulators and politicians. The Consumer Product Safety Commission, a watchdog group, had warned people not to use the Tread + product in mid-April.
Peloton told the Securities and Exchange Commission, Peloton, on Friday that the SEC is also investigating its public disclosures related to those injuries. The company also said it has been named in several lawsuits related to the withdrawals.
A spokesman did not immediately respond to CNBC’s request for additional comments.
Shares of Peloton fell nearly 8% in pre-market trading, following a disappointing fourth-quarter financial report.
Peloton said he intends to cooperate with each of the investigations. “At this time, we cannot predict the scope, duration or outcome of the investigations,” the company added.
On Thursday, Peloton said it is lowering the price of its original bike for the second time, reducing the cost by about 20% to $ 1,495. In doing so, the company said it hopes to reach new customers who previously could not afford their cycles.
Shares of Peloton have fallen about 25% to date, bringing the company’s market capitalization to $ 34 billion.
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