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Lumber Liquidators Stands Behind Products as Stock Plunges






TOANO, Va. (AP) — Lumber Liquidators is refuting a “60 Minutes” report that raised health concerns about some of its laminate flooring products and pushed its stock price to its lowest level in more than two years.

In a Monday filing with the Securities and Exchange Commission, Lumber Liquidators said all of its laminate flooring meets the safety standards set by regulators throughout the U.S. The defense came the day after “60 Minutes” aired findings that some of Lumber Liquidators’ flooring made in China had high levels of formaldehyde, a carcinogen.

The tests by three certified labs concluded the amounts of formaldehyde failed to meet California’s emissions standards.

Lumber Liquidators’ stock plunged $13.03, or 25 percent, to close at $38.83. Earlier in the session, the shares fell to $38.19, the lowest since July 2012.

The Toano, Virginia, company asserted that the doubts being raised by its products are being fueled by “short sellers” — investors that make money by placing bets that specific stocks will drop in value.

The “60 Minutes” report included interviews with Denny Larson, executive director of nonprofit group Global Community Monitor, and environmental attorney Richard Drury. Larson and Drury purchased boxes of laminate flooring from several retailers with stores in California, including Lumber Liquidators. They sent the products to the labs for testing.

While Lumber Liquidators’ flooring made in the U.S. met California’s emissions standards, every sample manufactured in China failed.

Lumber Liquidators said random testing of its six laminate flooring suppliers in China determined the products were “safe and compliant.”

“We stand by every single plank of wood and laminate we sell all around the country,” the company said in its SEC filing.

Lumber Liquidators has 354 stores in the U.S. and Canada, including 37 in California. The company earned $63 million on sales of $1.05 billion last year.

The “60 Minutes” report is the second damaging blow to Lumber Liquidators in less than week.

In a separate SEC filing last Wednesday, the company disclosed the U.S. Justice Department may seek criminal charges against it under the Lacey Act, which is a U.S. law that includes a ban on illegally sourced wood products.

Lumber Liquidators’ stock has plummeted by 44 percent since last Wednesday’s filing.


Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


East Oakland Organizer Needed

The East Oakland Stadium Alliance (EOSA) is seeking an Oakland-based grassroots organizer for a short-term engagement to help grow and mobilize our coalition! Comprised of local businesses, workers, labor organizations, and community members, we are deeply concerned about the Oakland A’s proposal to leave the Coliseum site in East Oakland and build a new stadium at the port. An ideal candidate has on-the-ground campaign field experience, a strong awareness of Oakland and Alameda County political figures, and deep ties to East and West Oakland communities. Being a local resident of Oakland is a plus.

Employment with EOSA is a part-time role and will last for a minimum of four months with an opportunity to extend longer. Transportation and cell phone use would be reimbursed and candidates of color are strongly encouraged to apply.

If interested, please send a cover letter and resume to Emily Penrod, For more info about EOSA, visit our website and check us out on Twitter @AllianceOakland.


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