Peloton Interactive Inc. said Friday that the U.S. government has subpoenaed the company for information on its reporting of injuries related to its products.
Both the U.S. Department of Homeland Security and the U.S. Department of Justice have issued subpoenas, Peloton said in its annual filing with the Securities and Exchange Commission. Additionally, it said the SEC is investigating the company’s public disclosures over these issues.
The SEC, in an emailed statement to The Wall Street Journal, said it doesn’t comment on whether or not a possible investigation exists. Both the Justice Department and Department of Homeland Security didn’t respond immediately to requests for comment.
Shares of the company were down 9.2% at $103.61 a share. The company late Thursday said it expected more muted growth in the coming year.
The Consumer Product Safety Commission earlier this year warned people with pets or children to cease using the company’s treadmills after it investigated a child dying from being pulled under one of them. Peloton initially pushed back against the regulator, but later apologized and agreed to recall its treadmills.
Peloton on Thursday said more customers than anticipated returned their treadmill machines because of the recall. The Tread+ treadmill has yet to return to market.
The company earlier this year said the recall of its treadmills would hurt its financial results. During the pandemic, the company saw sales boom as more people pivoted to exercising at home.
On Thursday, Peloton said sales doubled to $4 billion in the fiscal year ended June 30, but the company’s loss widened to $189 million from $71.6 million.
Peloton also sliced the price on its original stationary bike by 20%. The product now costs $1,495.
Write to Allison Prang at allison.prang@wsj.com
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