Peloton recognizes subpoenas, SEC review

Peloton has been subpoenaed by the Justice Department and the Department of Homeland Security for documents and other information related to its reporting of injuries associated with its exercise equipment.

The company also said Friday that the Securities and Exchange Commission is “investigating our public disclosures concerning these matters.”

In May, Peloton recalled about 125,000 of its treadmills less than a month after denying they were dangerous despite the death of at least one child and injuries to 29 users.

The U.S. Consumer Product Safety Commission warned on April 17 that people with children and pets should immediately stop using the Tread+.

The disclosures in an SEC filing arrive a day after the company posted a loss for its most-recent quarter, showed slower revenue growth, and cut the price of its most-popular product. A portion of the latest quarter’s loss stemmed from the recall of its treadmill machine.

The company announced Thursday that it is cutting the price of its Peloton Bike — the product that was the cornerstone of its popularity — to $1,495 from $1,895. It will also offer additional financing options for those wanting to purchase the bike. The move could be seen as either a sign Peloton wants to broaden its customer base, or that demand for its products is waning.

Shares of Peloton Interactive Inc. fell more than 7% before the market open on Friday.

Peloton was one of the pandemic’s success stories, as quarantined Americans bought at-home exercise equipment in a bid to stay fit. But its success has bred additional competitors, who now sell cheaper bicycles and exercise equipment.