Why is dhs investigating peloton?

Both subpoenas are part of investigations around the way the company reported injuries from its treadmills. It’s seemingly another sign that, in spite of the return of one of its two Tread products to market, the larger implications are far from over for the company.

Peloton writes in the filing:

The company declined to comment further on the investigations.

Peloton was, notably, at odds with the U.S. Consumer Product Safety Commission (CPSC)’s initial warning to stop using its treadmill products after an accident with the Tread+ resulted in a child’s death. At the time, Peloton said it was “troubled” by the reporting and insisted that “there is no reason to stop using the Tread+, as long as all warnings and safety instructions are followed.” In May, CEO John Foley apologized for the pushback and agreed to work with the CPSC on a recall.

Peloton Says It's Been Subpoenaed By DOJ And DHS Over Its Product Injury Reporting In a filing with the SEC, Peloton said it was being investigated for its reporting on injuries associated with one of its treadmill products, the Tread+.

Aug 27 (Reuters) - Peloton Interactive Inc (PTON.O) said on Friday 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.

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 U.S. securities regulator.

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. read more

Its public disclosures related to the reports are also under investigation by the U.S. Securities and Exchange Commission, Peloton said.

"Even with the treadmill 'fix' to prevent small children and pets from being injured, it is a high hurdle to get over when a child dies as a result of a product," said Walter Thompson, former president, American College of Sports Medicine.

Chief Executive Officer John Foley publicly apologized in May for Peloton's initial response to the accident reports, and the company also laid out steps to improve on safety. read more

Peloton said on Friday it had been named in several lawsuits associated with the recalls.

"We intend to cooperate fully with each of these investigations, and at this time, we are unable to predict the eventual scope, duration or outcome of the investigations," the company said.

The U.S. Consumer Product Safety Commission, which in April had warned about the dangers of the Tread+ treadmills, is already investigating the injuries.

Peloton said late on Thursday its near-term profitability would be affected due to a decision to slash the price of its exercise bike and higher commodity and marketing costs. read more

In May, Peloton issued a widespread recall for both of its treadmill machines, the Tread and the Tread+, after one child was killed in an accident and dozens of other users reported injuries.

For weeks, though, Peloton resisted recalling the machines, despite calls from regulators and politicians to do so. The Consumer Product Safety Commission, a watchdog group, had warned people not to use the Tread+ product in mid-April.

In a Friday filing with the Securities and Exchange Commission, Peloton said it is also being investigated by the SEC for its public disclosures related to those injuries. The company also said it has been named in several lawsuits associated with the recalls.

A spokesperson did not immediately respond to CNBC’s request for additional comment.

Peloton shares were down nearly 8 percent in premarket trading Friday, following a disappointing fiscal fourth-quarter financial report.

Peloton said it intends to cooperate with each of the investigations. “At this time, we are unable to predict the eventual scope, duration or outcome of the investigations,” the company added.