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60 Minutes: Lumber Liquidators Sold Illegal Flooring

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Trading of Lumber Liquidators Holdings Inc. (LL) was halted on Monday after its stock tanked 20 percent on a TV show, which claimed the company sold flooring that may not meet safety and health standards.

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According to the TV interview program "60 Minutes" on CBS, Lumber Liquidators sold flooring manufactured in China containing levels of formaldehyde that may not meet health and safety standards of California.

A investigation by CBS reporters discovered that the laminate flooring made in China failed to meet health and safety standards of California, as it contained higher levels toxic formaldehyde.

The "60 Minutes" tested flooring sold in Virginia, Florida, Texas, Illinois and New York for levels of formaldehyde, a cancer-causing chemical. "It turns out of the 31 samples of Chinese-made laminate flooring, only one was compliant with formaldehyde emissions standards. Some were more than 13x over the California limit. Both labs told us they had never seen formaldehyde levels that high," according to the CBS.

However, Lumber Liquidators claims its Chinese-made laminate flooring have been tested and are safe.

"We stand by every single plank of wood and laminate we sell all around the country and will continue to deliver the best product at the best price to our growing base of valued customers," Lumber Liquidators said in a statement.

Last week, Lumber Liquidators shares took a beating after the company revealed it was aware of the impeding "60 Minutes" segment and possible criminal charges it could face.

The company also may face criminal charges under the Lacey Act from the DOJ.

LL is currently trading at $40.31, down $11.55 or -22.27%, on the NYSE.

by RTT Staff Writer

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