Shares of Peloton Interactive Inc. took a 5.4% dive in morning trading Wednesday, reversing an earlier intraday gain of as much as 2.2%, after the at-home-fitness company said it was voluntarily recalling about 125,000 Tread+ treadmills, citing “risk of injury or death.” The company is also recalling about 1,050 Tread treadmills, citing risk of injury. The Tread+ recall, which involves treadmills with model number TR01, comes after 72 reports of adults, children, pets and/or objects being pulled under the rear of the treadmill, including 29 reports of injuries to children and one death of a 6-year-old child. The recalled products were sold online and at Peloton showrooms from September 2018 through April 2021 for about $4,295. “Consumers should immediately stop using the recalled Tread+ and contact Peloton for a full refund until November 6, 2022. Consumers who return the Tread+ treadmill after that date will receive a partial refund,” Peloton said in a statement. In April, after the U.S. Consumer Product Safety (CPSC) Commission warned consumers to stop using the Tread+ products after multiple reports of injuries and a death, Peloton said the CPSC report was “inaccurate and misleading,” and said there was no reason to stop using Tread+ products as long as all warnings were followed. Peloton’s stock has plunged 38.3% over the past three months, while the S&P 500 has gained 7.2%.
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