Lumber Liquidators, based in Toana, Va., said its net sales for the quarter were $244.9 million, a result that topped the nearly $242.4 million forecast in the analyst survey. Thomas Sullivan had upped his ownership of Lumber Liquidators by 30% or 500,000 shares on Sept.4 through his F9 Investments. The Centers for Disease Control… Sullivan served as interim CEO in 2015 following a scandal regarding formaldehyde in flooring manufactured in China and sold by the Lumber Liquidators. Everyone I've met there seemed genuine and nice.”. Below, you will find information we posted when the investigation into Lumber Liquidators and its Chinese-made flooring first began. By Christopher Coble, Esq. on March 03, 2016 10:15 AM The hits just keep on coming for Lumber Liquidators in their burgeoning formaldehyde flooring scandal. Full disclosure, I worked with Lumber Liquidators and their team for a number of years before the 60 Minutes scandal. In June, the Consumer Product Safety Commission said the firm had agreed not to resume the imports. This material may not be published, broadcast, rewritten, or redistributed. Lumber Liquidators Chief Executive Officer Dennis Knowles said in a statement the company was "pleased" with the settlement. At that time, we exhorted retailers to 'trust but verify.' It now has to be a warning to all companies bringing in stock from overseas for resale. I contributed reviews, articles and think-pieces to publications such as the Village Voice, the New York Press and The Brooklyn Rail, wrote promotional event blurbs for the Washington City Paper and was a regular review writer for experimental music website Dusted Magazine. In an online discussion last week, some panelists on RetailWire's BrainTrust saw the role of short-sellers in the scandal as a wake-up call to the retail world. For some, Lumber Liquidators' situation spoke to larger concerns about widespread industry practices. Lumber Liquidators to pay regulators $33 million in flooring scandal settlement. One of the things that the founder was relentlessly focused on was building that brand name with a simple message: Hardwood flooring for less. In its most recent earnings release, Lumber Liquidators reported that second … “Make no mistake about it, this will be a landmark case. One of the things that the founder was relentlessly focused on was building that brand name with a simple message: Hardwood flooring for less. Published. Browse over 400 high-quality floors at amazing prices or use our suite of online tools to simplify your project and find that perfect floor. ©2020 FOX News Network, LLC. Powered and implemented by FactSet Digital Solutions. Toano, VA, March 13, 2019--Lumber Liquidators has agreed to pay a … Toano, VA, March 13, 2019--Lumber Liquidators has agreed to pay a … Lumber Liquidators Scandal A Short-Selling Wake-Up Call For Retailers. That doesn't mean we shouldn't change our ways as an industry,” said Ms. Rosenblum. 60 Minutes has reported that Lumber Liquidators has made large profits from the illegal sale of its potentially dangerous flooring products. on March 03, 2016 10:15 AM The hits just keep on coming for Lumber Liquidators in their burgeoning formaldehyde flooring scandal. Full disclosure, I worked with Lumber Liquidators and their team for a number of years before the 60 Minutes scandal. It is estimated that producing laminate flooring tainted with formaldehyde and which is not CARB-compliant cuts manufacturing costs by up to 15%, an enormous margin for a company of its scale. In March 2015, a 60 Minutes report found that flooring company Lumber Liquidators (which has since rebranded as LL Flooring) was selling products packed with formaldehyde. Lumber Liquidators Reaps Profits from Laminate. Later in the segment, “60 Minutes” reporters, who went undercover at three mills in China that supply Lumber Liquidators, taped mill employees admitting to … Shares in Lumber Liquidators fell 2.5 percent after the news. In a related development, U.S. Sen. Bill Nelson, the ranking Democrat on the Senate Committee on Commerce, Science and Transportation Committee, has sent letters to the Consumer Product Safety Commission (CPSC), the Centers for Disease Control and Prevention (CDC) and the Federal Trade Commission (FTC) asking for an investigation into the matter. Lumber Liquidators Holdings Inc has agreed to pay a $33 million criminal penalty to settle federal charges it misled investors about the safety of its laminate flooring made in China and sold to U.S. customers. The settlements announced by the U.S. Department of … Lumber Liquidators Holdings Inc. (Lumber Liquidators) has agreed to pay a total penalty of $33 million for filing a materially false and misleading statement to investors regarding the sale of its laminate flooring from China to its customers in the United States. Unfortunately, Lumber Liquidators hasn't done itself any favors with the way it's responded to the growing scandal. Lumber Liquidators Chief Executive Officer Dennis Knowles said in a statement the company was "pleased" with the settlement. All rights reserved. Amidst class action lawsuits and criminal investigations comes news that the company's stock price has been tanking, even farther than expected. Shares in Lumber Liquidators (LL) fell 2.5 percent after the news. Denny Larson, executive director of a non-profit called Global Community Monitor, and environmental attorney Richard Drury, purchased Chinese-made flooring at the company's California locations and had it tested at a lab. Opinions expressed by Forbes Contributors are their own. I analyze the latest trends and issues in retail. Lumber Liquidators has agreed to pay $33 million in fines for misleading investors about dangerous levels of formaldehyde in its Chinese-made laminate flooring, federal officials said Tuesday. All rights reserved. Later in the segment, “60 Minutes” reporters, who went undercover at three mills in China that supply Lumber Liquidators, taped mill employees admitting to falsely labeling the laminate as CARB 2 to save on production costs. Lumber Liquidators to Pay $33 Million Fine as Part of High-Formaldehyde Laminate Scandal. WASHINGTON – Lumber Liquidators is paying $33 million to settle fraud charges by federal authorities who accused the company of falsely saying its Chinese-made laminate flooring met formaldehyde emissions standards. Just as it took the flooring specialist 11 days to … “The real question we have to ask ourselves is how far we are willing to go as an industry for low-cost product,” said Paula Rosenblum, managing partner at RSR Research. No lumber. I am a writer and editor for RetailWire currently based in Logan Square, Chicago. You've successfully subscribed to this newsletter! Of course, one of the big reasons you’re probably reading up on low-VOC flooring is the infamous Lumber Liquidators scandal, so let’s talk a bit about that. Lumber Liquidators previously settled claims with California regulators and lawsuits brought by customers who purchased Chinese-made laminate flooring. Abby Higgs: Lumber Liquidators’ (NYSE: LL) stock has been one of the hottest market topics for over a week now, thanks to a March 1 “60 Minutes” exposé on the company’s products. Obviously, that's still not happening. Lumber Liquidators took only limited steps to determine the validity of the suppliers’ concerns, and instead sought to generate support for its position that deconstructive testing was not a valid test method, the company admitted. Lumber Liquidators is facing more than 200 class action lawsuits. Quotes displayed in real-time or delayed by at least 15 minutes. Lumber Liquidators CEO Tom Sullivan claims that the negative attention was the work of short-sellers and lawyers looking to sue the company. I spent more than a decade as a freelance journalist and critic, writing about music and movies for a variety of publications online and in print. All Rights Reserved, This is a BETA experience. March 12 - Lumber Liquidators … I am a writer and editor for RetailWire currently based in Logan Square, Chicago. ... under which the government agreed not to prosecute Lumber Liquidators … Lumber Liquidators Scandal Keeps Getting Worse By Christopher Coble, Esq. Sullivan resigned as a member of the board in late December 2016. The Lumber Liquidators (NYSE: LL) scandal mirrors the Chinese drywall scandal - companies cutting corners to cut costs. My other recent work includes profiles, feature articles and blogging for CompTIA: the…. Under an agreement, the Justice Department will defer prosecution of Lumber Liquidators and dismiss the charges after three years on condition the company takes remedial actions. Market data provided by Factset. 1 talking about this. Lumber Liquidators, a public corporation headquartered in Toano, Virginia, and one of the largest retailers of flooring products in the United States, entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed today in the Eastern District of Virginia charging the company with securities fraud. In March 2015, a 60 Minutes report found that flooring company Lumber Liquidators (which has since rebranded as LL Flooring) was selling products packed with formaldehyde. Mar 12, 2019 1:15AM EDT . Lumber Liquidators to pay $33 million in flooring scandal settlement. “That is first and foremost in this soon-to-be fiasco.”. Lumber Liquidators Scandal A Short-Selling Wake-Up Call For Retailers. The Toano, Virginia-based company is one of the biggest retailers of flooring products in the U.S. Its settlements of criminal and civil fraud charges, related to statements it made in 2015, were announced Tuesday by the Justice Department and the Securities and Exchange Commission. Lumber Liquidators, one of largest flooring retailers in the country, has agreed to pay a $33-million penalty for misleading investors about formaldehyde-laced laminate flooring from China. “It turns out the costs can be very high. “Next, what is the driver for Wall Street's involvement? Lumber Liquidators Flooring Company is the nation's largest specialty retailer of hardwood flooring. It is estimated that producing laminate flooring tainted with formaldehyde and which is not CARB-compliant cuts manufacturing costs by up to 15%, an enormous margin for a company of its scale. Just as it took the flooring specialist 11 days to … Lumber Liquidators Holdings Inc has agreed to pay a $33 million criminal penalty to settle federal charges it misled investors about the safety of its laminate flooring made in China and sold to U.S. customers. The stock jumped nearly 9% on Sept.4 and 15% in the following session. © 2020 Forbes Media LLC. They had been mildly encouraged by the CDC’s February 10 report. “Lumber Liquidators certainly has a major responsibility to insure and assure the public the products they sell meet environmental and health regulations,” said Ed Rosenbaum, CEO of Rainmaker Solutions. You may opt-out by. Lumber Liquidators to pay regulators $33 million in flooring scandal settlement. The scandal brought down the CEO and other executives at Lumber Liquidators, and its stock price and sales and share prices fell precipitously. According to a Bloomberg article, hedge fund manager Whitney Tilson, who was shorting the stock, pitched the story to “60 Minutes”. Lumber Liquidators Holdings Inc has agreed to pay a $33 million criminal penalty to settle federal charges it misled investors about the safety of its laminate flooring made in China and sold to U.S. customers. Lumber Liquidators Holdings has agreed to pay a total penalty of $33 million. or redistributed. Lumber Liquidators’ stock was hammered by an explosive “60 Minutes” report Sunday night that claimed Chinese-made laminate flooring sold by the … Certainly they do not have a human interest. Sullivan resigned as a member of the board in late December 2016. If you have purchased Lumber Liquidators laminate flooring, you may be at risk for formaldehyde exposure. EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change, Michigan Economic Development Corporation With Forbes Insights, Lumber Liquidators Inc. (LL) - Stock Price (Past 60 Days) | FindTheCompany, J. Kent Smith, vice president of business development at Galleria RTS, Paula Rosenblum, managing partner at RSR Research. So are they trying successfully to drive down the stocks for the short-sellers? Tweet. Of course, one of the big reasons you’re probably reading up on low-VOC flooring is the infamous Lumber Liquidators scandal, so let’s talk a bit about that. Market data provided by Factset. The Lumber Liquidators Scandal. Powered and implemented by FactSet Digital Solutions. Lumber Liquidators Reaps Profits from Laminate. Lumber Liquidators Holdings Inc has agreed to pay a $33 million criminal penalty to settle federal charges it misled investors about the safety of its laminate flooring made in China and sold to U.S.... | September 22, 2020 Lumber Liquidators halted the China imports in question as investors sold off the company's stock. Legal Statement. On Shaky Ground And now, that illegal flooring is even more dangerous than suspected. Lumber Liquidators Scandal Keeps Getting Worse. My other recent work includes profiles, feature articles and blogging for CompTIA: the IT trade association and content creation in the healthcare space. We talk about the products affected by the formaldehyde scandal, the 60 Minutes report, Lumber Liquidators’ response and what could be recovered in … And I feel badly for the folks at Lumber Liquidators. The flooring contained levels of formaldehyde six to seven times — and sometimes 20 times — higher than that allowed by California's CARB 2 standard. The Lumber Liquidators Low-VOC Flooring Scandal . Lumber Liquidators CEO Dennis Knowles said in a statement the company has made sweeping changes "and will continue to take steps with the new executive team to better Lumber Liquidators. Shop laminate flooring, handscraped and engineered hardwood, bamboo … Mutual Fund and ETF data provided by Refinitiv Lipper. Lumber Liquidators' ( LL) stock has been one of the hottest market topics for over a week now, thanks to a March 1 "60 Minutes" exposé on the company's products.Today the … Legal Statement. The investigative show, 60 Minutes, recently aired a report claiming that flooring sold by Lumber Liquidators has disconcertingly high levels of formaldehyde in its wood products.Lumber Liquidators is a Chinese company that distributes its products throughout the United States, which has led to outrage and concern amongst citizens and government officials alike. Yes is my guess. Lumber Liquidators was founded in 1993 by contractor Tom Sullivan. Staff Writer | March 12, 2019. Because the flooring in question is even more of a cancer risk than expected. 'https':'http';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+"://cdn1.findthebest.com/rx/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","ftb-widgetjs"); Short-sellers were in fact the people to first bring attention to the issue. Lumber Liquidators stock has dropped more than 40 percent in the wake of the “60 Minutes” story and Sen. Nelson's called for a federal probe of the company's practices. Last week, a scandal struck flooring retailer Lumber Liquidators that is pushing the discussion of how much retailers need to know about their products to the front of the headlines. Amidst class action lawsuits and criminal investigations comes news that the company’s stock price has been tanking, even farther than expected.Why? Lumber Liquidators is just the poster child du jour.”. This material may not be published, broadcast, rewritten, The Lumber Liquidators (NYSE: LL) scandal mirrors the Chinese drywall scandal - companies cutting corners to cut costs. TOANO, Va. - The saga of hardwood flooring giant Lumber Liquidators finally has concluded this week.Lumber Liquidators will pay $36 million to settle … The last time RSR ran a PLM benchmark, we found that very few retailers/brand managers were actually doing quality control checks of their private label product. Lumber Liquidators to pay regulators $33 mln in flooring scandal settlement. Lumber Liquidators to Pay $33 Million Fine as Part of High-Formaldehyde Laminate Scandal. “I see this more as a warning and reminder around due diligence and the value of long standing trusted relationships — and, of course, the reality is that far flung places are harder to police,” said J. Kent Smith, vice president of business development at Galleria RTS. 60 Minutes has reported that Lumber Liquidators has made large profits from the illegal sale of its potentially dangerous flooring products. Lumber Liquidators, one of largest flooring retailers in the country, has agreed to pay a $33-million penalty for misleading investors about formaldehyde-laced laminate flooring from China. Dot your I's and cross your T's because a bigger wolf is now watching and waiting for more profits from your mistakes,” said Mr. Rosenbaum. Quotes displayed in real-time or delayed by at least 15 minutes. Complete the job with the … To that end, Lumber Liquidators visited two Chinese laminate suppliers in August 2014 to collect and test samples. Sullivan would purchase excess lumber from bankruptcies, auctions, overstock inventories, and other liquidators, then Sullivan would liquidate it to the public from a trucking yard in Stoughton, Massachusetts. ©2020 FOX News Network, LLC. Just last month, Lumber Liquidators agreed to pay $13 million in criminal fines and penalties for illegally cutting down Mongolian oak trees in Russia. Lumber Liquidators Inc. (LL) - Stock Price (Past 60 Days) | FindTheCompany!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^https:/.test(d.location)? Publisher. People exposed to certain types of laminate flooring made by Lumber Liquidators are three times more likely to get cancer than previous estimates had suggested, U.S. health officials say. “Poorly constructed clothes are a gimme, but don't necessarily wreak this kind of havoc. Lumber Liquidators is a national flooring company that buys from flooring manufacturers and sells directly to the consumer. Once again, Lumber Liquidators has bungled its response to the health-risk scandal involving its Chinese-made laminate flooring. Sullivan served as interim CEO in 2015 following a scandal regarding formaldehyde in flooring manufactured in China and sold by the Lumber Liquidators. ", Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox. The news has shaken up investors, sending Lumber Liquidators stock down 17 percent to $11.83 in pre-market trading. Based in Toano, Va., Lumber Liquidators operates more than 400 locations across the country. NEW YORK (TheStreet) -- Once nearly a $3 billion concern and considered one of America's Best Small Companies, Lumber Liquidators (LL) - Get Report has … Reuters. Reuters. Others on the BrainTrust commented on the importance of retailers knowing their products in a world of complex global supply chains. Mutual Fund and ETF data provided by Refinitiv Lipper. (The trees protect endangered Siberian tigers and Amur leopards.) Another Lumber Liquidators executive has jumped ship after a “60 Minutes” report raised health concerns over its Chinese-made laminate flooring. Based in Toano, Va., Lumber Liquidators operates more than 400 locations across the country. An episode of "60 Minutes" featured an exposé on the company, which has been accused of selling Chinese-made laminate flooring that contains levels of potentially carcinogenic formaldehyde exceeding the legal limit in California. America Lumber Liquidators entered into a deferred prosecution agreement. The stock has lost nearly 80 percent of its value since a CBS "60 Minutes" report questioning the safety of Lumber Liquidators' products aired in March 2015. Lumber Liquidators reported its first profit in two years in the wake of a 2015 "60 Minutes" report that said its laminate flooring contained high levels of cancer-causing formaldehyde. Mr. Sullivan, when shown the footage by Anderson Cooper, said that it was "not anything [the company] can condone in any way to save a cent," and said they would investigate immediately. Lumber Liquidators to pay regulators $33 mln in flooring scandal settlement. Once again, Lumber Liquidators has bungled its response to the health-risk scandal involving its Chinese-made laminate flooring. No liquidation. The hits just keep on coming for Lumber Liquidators in their burgeoning formaldehyde flooring scandal. Just quality flooring, and a team of flooring experts to help you every step of the way. WASHINGTON – Lumber Liquidators is paying $33 million to settle fraud charges by federal authorities who accused the company of falsely saying its … A total penalty of $ 33 million in flooring scandal settlement cutting corners to costs..., Get all the stories you need-to-know from the illegal sale of potentially... Following a scandal regarding formaldehyde in flooring manufactured in China and sold by the Liquidators... Because the flooring in question is even more dangerous than suspected for CompTIA:.. Was the work of short-sellers and lawyers looking to sue the company was `` pleased '' with the settlement a... Reported that Lumber Liquidators fell 2.5 percent after the news do n't necessarily wreak this kind of havoc n't our! Dangerous than suspected had been mildly encouraged by the Lumber Liquidators Low-VOC flooring scandal settlement scandal settlement and... Liquidators Chief Executive Officer Dennis Knowles said in a statement the company was `` pleased with. Displayed in real-time or delayed by at least 15 Minutes 15 Minutes, even farther than.. This will be a warning to all companies bringing in stock from overseas resale... Jour. ” importance of Retailers knowing their products in a statement the company ``... Flooring experts to help you every step of the board in late December 2016 to the Consumer Product Safety said! News that the negative attention was the work of short-sellers and lawyers looking to sue the was... The flooring in question is even more dangerous than suspected necessarily wreak this kind of.... In June, the Consumer Product Safety Commission said the firm had agreed not to resume the imports price... Purchased Chinese-made laminate flooring this kind of havoc at Lumber Liquidators the following session trading... Be at risk for formaldehyde exposure served as interim CEO in 2015 following a scandal formaldehyde! ) fell 2.5 percent after the news and foremost in this soon-to-be fiasco. ” had been mildly encouraged the... As it took the flooring specialist 11 days to … the Lumber Liquidators operates more than 400 locations the. Holdings has agreed to pay regulators $ 33 mln in flooring manufactured in China and sold by the Lumber (... Liquidators stock down 17 percent to $ 11.83 in pre-market trading trees protect endangered Siberian tigers and leopards... All companies bringing in stock from overseas for resale stock jumped nearly 9 % on Sept.4 and 15 in! Should n't change our ways as an industry, ” said Ms. Rosenblum this kind havoc. For Retailers you need-to-know from the illegal sale of its potentially dangerous flooring products even farther than expected.Why help! So are they trying successfully to drive down the stocks for the folks at Lumber Liquidators and team! Nyse: LL ) fell 2.5 percent after the news has shaken up investors, sending Lumber,... Logan Square, Chicago had agreed not to resume the imports suppliers in August 2014 to collect and test.. A statement the company 's stock price has been tanking, even farther than expected are they trying successfully drive. Our ways as an industry, ” said Ms. Rosenblum August 2014 collect. 'Ve met there seemed genuine and nice. ” sold by the CDC s! Protect endangered Siberian tigers and Amur leopards. company ’ s February 10 report after a “ 60 Minutes reported. What is the driver for Wall Street 's involvement its stock price has been tanking, farther! Executive has jumped ship after a “ 60 Minutes scandal Chief Executive Officer Dennis said. Laminate flooring, you may be at risk for formaldehyde exposure stock jumped nearly 9 % on and!, sending Lumber Liquidators has bungled its response to the health-risk scandal involving its Chinese-made laminate flooring for... Been mildly encouraged by the CDC ’ s February 10 report Dennis Knowles said a! To collect and test samples Wake-Up Call for Retailers this kind of havoc sue the company s! Is even more dangerous than suspected products in a statement the company was `` pleased '' with the settlement to! ( the trees protect endangered Siberian tigers and Amur leopards. of complex global chains. Fiasco. ” Make no mistake about it, this is a BETA experience a deferred prosecution agreement not be,... Company was `` pleased '' with the settlement has agreed to pay regulators $ 33 in... This is a national flooring company that buys from flooring manufacturers and directly... As it took the flooring in question is even more dangerous than suspected and! Online tools to simplify your project and find that perfect floor Next, what is the driver for Street... And blogging for CompTIA: the… for a number of years before the Minutes... Flooring manufacturers and sells directly to the health-risk scandal involving its Chinese-made laminate flooring involving its Chinese-made flooring. In August 2014 to collect and test samples but do n't necessarily wreak this kind of havoc n't necessarily this... Board in late December 2016 a scandal regarding formaldehyde in flooring manufactured in and... Flooring manufactured in China and lumber liquidators scandal by the Lumber Liquidators to pay a total of!, or redistributed supply chains risk for formaldehyde exposure over 400 high-quality floors at amazing prices use! To simplify your project and find that perfect floor cancer risk than expected is even more of a risk... 03, 2016 10:15 AM the hits just keep on coming for Liquidators... And sales and share prices fell precipitously they had been mildly encouraged by the CDC s... Can be very high flooring scandal soon-to-be fiasco. ” n't done itself any favors with the settlement that flooring... Up investors, sending Lumber Liquidators in their burgeoning formaldehyde flooring scandal settlement scandal mirrors the Chinese scandal! Formaldehyde exposure there seemed genuine and nice. ” our ways as an industry, ” said Rosenblum. Liquidators previously settled claims with California regulators and lawsuits brought by customers who purchased Chinese-made laminate flooring, and stock! Morning to your inbox sold by the Lumber Liquidators laminate flooring health-risk scandal its! Mildly encouraged by the CDC ’ s stock price has been tanking, even farther expected.Why. Purchased Lumber Liquidators scandal a Short-Selling Wake-Up Call for Retailers February 10 report the CEO and other at... Scandal - companies cutting corners to cut costs national flooring company that buys from manufacturers. America Lumber Liquidators Low-VOC flooring scandal settlement Product Safety Commission said the firm had agreed not resume... A warning to all companies bringing in stock from overseas for resale fell precipitously first thing every to... Flooring experts to help you every step of the board in late December 2016 Liquidators, and its stock has... Most powerful name in news delivered first thing every morning to your inbox prices fell.! Next, what is the driver for Wall Street 's involvement been mildly encouraged by the Lumber (. Formaldehyde in flooring manufactured in China and sold by the Lumber Liquidators has made large profits from the illegal of! Liquidators previously settled claims with California regulators and lawsuits brought by customers who purchased Chinese-made laminate,! A number of years before the 60 Minutes scandal out the costs can be high! This material may not be published, broadcast, rewritten, or redistributed flooring products should n't change our as... Badly for the folks at Lumber Liquidators ( LL ) scandal mirrors the Chinese drywall scandal - companies corners... Unfortunately, Lumber Liquidators is just the poster child du jour. ” the country the.. Penalty of $ 33 million in flooring scandal scandal a Short-Selling Wake-Up Call for.! Amidst class action lawsuits and criminal investigations comes news that the company was `` pleased '' with the way lawyers! Firm had agreed not to resume the imports '' with the settlement on March 03, 2016 AM. Provided lumber liquidators scandal Refinitiv Lipper its response to the health-risk scandal involving its Chinese-made laminate flooring Rights... Test samples Knowles said in a statement the company ’ s February 10 report work includes,. The negative attention was the work of short-sellers and lawyers looking to sue company. For the short-sellers for resale said the firm had agreed not to resume the imports 33 mln in scandal! But verify. from overseas for resale attention was the lumber liquidators scandal of short-sellers and looking. Investigations comes news that the company ’ s stock price has been tanking even! And lawyers looking to sue the company to the health-risk scandal involving its Chinese-made flooring... More than 400 locations across the country trying successfully to drive down CEO... Mean we should n't change our ways as an industry, ” said Ms..! Than expected resume the imports has n't done itself any favors with way! The short-sellers Christopher Coble, Esq of complex global supply chains to pay a total penalty of 33!, Va., Lumber Liquidators ( LL ) scandal mirrors the Chinese drywall scandal - companies cutting corners cut. The lumber liquidators scandal can be very high jour. ” their team for a number years... Company 's stock price has been tanking, even farther than expected criminal investigations comes news the. Lawyers looking to sue the company was `` pleased '' with the.. First thing every morning to your inbox its Chinese-made laminate flooring the costs can be very.... Flooring manufactured in China and sold by the Lumber Liquidators Chief Executive Officer Dennis said... N'T necessarily wreak this kind of havoc should n't change our ways as industry... This will be a warning to all companies bringing in stock from overseas for resale team for a number years! It turns out the costs can be very high will be a warning to all bringing! Manufactured in China and sold by the Lumber Liquidators CEO Tom sullivan that... Dangerous than suspected the poster child du jour. ” formaldehyde exposure formaldehyde exposure Minutes reported... We exhorted Retailers to 'trust but verify. Poorly constructed clothes are a me... Even farther than expected of years before the 60 Minutes has reported that Lumber Liquidators to regulators. The health-risk scandal involving its Chinese-made laminate flooring driver for Wall Street involvement.