(Reuters) – Peloton Interactive Inc. said on Friday that US regulators are investigating the company and increasing the misery of the exercise bike when dealing with a backlash over reports of treadmill accidents.
The US Department of Justice and the Department of Homeland Security have sued the company for documents and information about injuries from their exercise machines, the company said in an application to the US Securities and Exchange Commission.
The peloton recalled its Tread + product in May, just weeks after saying there was "no reason" to stop using the exercise machine despite reports of a child's death and multiple injuries.
Its public disclosures related to the reports are also being investigated by the US Securities and Exchange Commission, Peloton said.
In May, CEO John Foley publicly apologized for Peloton's early response to the accident reports, and the company also presented measures to improve the safety of its equipment.
The peloton said on Friday that it had been given the name in several lawsuits in connection with the recalls.
"We intend to fully cooperate with each of these investigations, and at present we cannot predict the possible scope, duration or outcome of the investigations," the company said.
The US Consumer Product Safety Commission, which in April warned of the dangers of Tread + treadmills, is already investigating the damage.
"We are increasingly seeing signs that the company Peloton is not as large as Peloton's history," said BMO Capital Markets analyst Simeon Siegel.
Peloton said late Thursday that short-term profitability would be affected by a decision to lower the price of its exercise bike and higher commodity and marketing costs.
The company's shares fell 4.2% to $ 1