Less than a week ago, Peloton announced it would have a treadmill back on the market by the end of August, following a May recall of its Tread+ and Tread due to a slew of reported injuries and one child death associated with the fitness equipment. However, an SEC document reveals that connected fitness device company Pelton’s woes are far from over. The Department of Justice and the U.S. Department of Homeland Security have subpoenaed the company for information and documents related to their reporting of injuries associated with their treadmills. The documents also revealed that the SEC is investigating its public disclosure concerning the injuries and child death. Earlier this year, the U.S. Consumer Protection Safety Commission investigated the company for the reported injuries and death. Peloton has agreed to work with the commission and recall the products. However, federal subpoenas and the CPSC investigation aren’t the company’s only legal battles. “In addition to the CPSC investigation, we are presently subject to class action litigation, private personal injury claims, and regulatory proceedings related to the Tread+ and Tread recalls that, regardless of their merits, could harm our reputation, divert management’s attention from our operations, and result in substantial legal fees, judgments, fines, penalties, and other costs,” the company wrote in the SEC filing. WHY IT MATTERS According to the CPSC, Peloton’s Tread+ was involved in a number of injuries and the...
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