Peloton refuses to recall its Tread+ treadmill after 39 accidents. Its stock is tumbling
CNN
Peloton shares fell 7% in premarket trading following an "urgent warning" from the United States government telling owners of the company's Tread+ to stop using the machine.
On Saturday, the Consumer Product Safety Commission said it has become aware of 39 accidents involving the $4,295 treadmill, including "multiple reports of children becoming entrapped, pinned, and pulled under" the machine. The CPSC said it's urging customers with small children and pets to stop using the machine immediately. A child died in March in an incident involving the machine. That prompted a strongly worded statement from Peloton (PTON), claiming the federal agency's notice is "inaccurate and misleading." The fitness company said there's "no reason" to stop using the machine if safety instructions, such as correctly using its safety key, are followed.
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