Peloton under investigation by the SEC and Department of Justice
CNN
Peloton, the maker of exercise treadmills that have been recalled due to injuries, is the subject of an investigation by the Securities and Exchange Commission. The Department of Justice and the Department of Homeland Security have also subpoenaed documents from the company related to how it reported those injuries, Peloton said in a recent annual financial filing.
The home fitness company recalled its Tread and Tread+ treadmills last May after initially pushing back against a Consumer Products Safety Commission request that it do so. The CPSC had cited the death of one child and 70 other injuries involving the treadmills. The agency said it was aware of multiple instances of children being pulled under running treadmills. Pets and objects could also get drawn into the machines, causing injuries to users, the CPSC said. Peloton later acknowledged it was wrong to initially reject the recall request.
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