Peloton Interactive (PTON) - Get Report shares slumped lower Monday after consumer safety officials in the U.S. issued an 'urgent warning' linked to the fitness equipment maker's Treadmill+ following a spate of injuries, and one fatality, over the past month.
The U.S. Consumer Product Safety Commission (CPSC) said Saturday that "multiple incidents of small children and a pet being injured beneath the machines" preceded its formal warning, adding that its "continuing to investigate all known incidents of injury or death related to the Peloton Tread+."
"To date, CPSC is aware of 39 incidents including one death. CPSC staff believes the Peloton Tread+ poses serious risks to children for abrasions, fractures, and death," the agency said. "In light of multiple reports of children becoming entrapped, pinned, and pulled under the rear roller of the product, CPSC urges consumers with children at home to stop using the product immediately."
Peloton shares were marked 4.3% lower in early trading Monday to change hands at $111.20 each, a move that would extend the stock's year-to-date decline to around 27%.
Last month, CEO John Foley revealed that a tragic accident involving the company's newly-released treadmill has resulted in the death of a young child.
In a blogpost published on the company's website, Foley said the accident involved a Peloton Tread+, which was released in the spring of last year.
"While we are aware of only a small handful of incidents involving the Tread+ where children have been hurt, each one is devastating to all of us at Peloton, and our hearts go out to the families involved," Foley said.
"We design and build all of our products with safety in mind," Foley said. "But in order to help ensure that you and your family stay safe with Peloton products in your home, we need your help."