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Globe/wire say SEC, others investigating Peloton

2021-08-30 07:34 ET - In the News

The Globe and Mail reports in its Saturday edition that Peloton Interactive Inc. said on Friday that U.S. regulators were investigating the company, adding to the exercise-bike maker's woes as it deals with a backlash over reports of accidents involving its treadmills. A Reuters dispatch to The Globe says that the U.S. Department of Justice and the Department of Homeland Security have subpoenaed the company for documents and information over injuries from its exercise machines, the company said in a filing with the Securities and Exchange Commission. Peloton recalled its Tread+ product in May, just weeks after saying there was "no reason" to stop using the exercise machine despite reports of the death of a child and multiple injuries. Its public disclosures related to the reports are also under investigation by the SEC, Peloton said. Chief executive officer John Foley apologized in May for Peloton's early response to the accident reports, and the company also laid out steps to improve safety of its equipment. The Consumer Product Safety Commission, which in April had warned about the dangers of the Tread+ treadmills, is investigating the injuries. Peloton has also been named in several class-action lawsuits.

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