Lumber Liquidators Faces Criminal Investigation, Formaldehyde Charges
Shareholder rights law firm Schubert Jonckheer & Kolbe LLP has launched an investigation into whether certain officers and directors of Lumber Liquidators, Inc. (NYSE: LL) ("Lumber Liquidators" or the "Company") breached their fiduciary duties to Lumber Liquidators and its shareholders by exposing Lumber Liquidators to criminal as well as civil liability by selling flooring containing illegally sourced wood products.
Lumber Liquidators announced Wednesday that the Department of Justice has informed the company that it will be filing criminal charges against Lumber Liquidators for violations of the Lacey Act, which prohibits the importation and trade of illegally sourced wood products.
In addition, the Company reported Wednesday that allegations that the Company’s Chinese-made laminate flooring contains high levels of formaldehyde, a known carcinogen, made in a 60 Minutes report that ran on March 1, 2015, has had a dramatic impact on its bottom line. Wall Street had previously been anticipating that Lumber Liquidators would report a profit of 16 cents a share for the first quarter of 2015; instead, Lumber Liquidators reported a loss of 29 cents per share. The Company further reported that it is facing more than 100 lawsuits over the formaldehyde issue.
Lumber Liquidators stock price fell approximately 20% following Wednesday’s announcement to $26.76.
If you currently own Lumber Liquidators stock and wish to obtain additional information about the investigation and your legal rights, please fill out our form (at right) or contact Miranda Kolbe either via email at email@example.com or by phone at 415-788-4220.