Peloton Interactive (PTON) - Get Peloton Interactive, Inc. Class A Report shares extended declines Friday after receiving subpoenas from the Department of Justice regarding the reporting of injuries linked to its fitness equipment products.
The news followed last night's wider-than-expected fourth quarter loss and details of a plan to slash the price of its flagship exercise bike for the second time this year.
Peloton added the the Department for Homeland Security also asked for "documents related to the reporting of the injuries associated with our products", including the Tread+ treadmill, in papers filed Friday with the Securities and Exchange Commission. The SEC, Peloton said, is "also investigating our public disclosures concerning these matters."
Earlier this spring, the U.S. Consumer Product Safety Commission (CPSC) issued an 'urgent warning' linked to Peloton's Tread+, noting "multiple incidents of small children and a pet being injured beneath the machines" and adding that its "continuing to investigate all known incidents of injury or death related to the Peloton Tread+."
The warning followed an announcement from CEO John Foley revealed that a tragic accident involving the company's newly-released treadmill has resulted in the death of a young child.
Peloton shares were marked 7.75% lower in pre-market trading Friday to indicate an opening bell price of $105.25 each, a move that would extend the stock's year-to-date decline to around 30.5%.
Peloton reported a fourth-quarter net loss of $1.05 per share on revenue of $936.9 million, compared to a Street consensus forecast of a 44 cents per share loss sales of $929.6 billion.
Peloton announced that it is cutting the price of its original at-home exercise bike for the second time this year Thursday. Starting today, the company's core bike will cost $1,495, a nearly 20% reduction.
Monthly financing for the bike dropped $10 to $39 per month. While the company said the move was to make the bike's more attainable, it could be a sign that competition is increasing in the at-home workout market.