Investigation of Lumber Liquidators comes to a close
NEW YORK - Federal regulators have closed an investigation of Lumber Liquidators (LL) after the company agreed not to resume sales of Chinese-made laminate flooring.
Shares of Lumber Liquidators soared more than 16 percent Friday morning.
The Toano, Virginia, company stopped selling the Chinese-made laminate flooring last year, a couple of months after a news report on "60 Minutes" said it contained high levels of the carcinogen formaldehyde.
The U.S. Consumer Production Safety Commission said late Thursday that Lumber Liquidators tested the air quality in 17,000 households and none had formaldehyde above guidelines.
Customers who installed the Chinese-made flooring should not rip it out, the CPSC said. Instead, they can call Lumber Liquidators to have their air tested. Lumber Liquidators has agreed to continue to test the air quality of homes for people that bought the flooring. The company will pay for removal of floors or any other changes needed if formaldehyde is detected at unsafe levels.
About 614,000 people bought the Chinese-made laminate flooring from 2011 to 2015, the CPSC said.
The CPSC found that high levels of formaldehyde from the floors may cause eye, throat and nose irritation. It said very higher levels of formaldehyde in homes might increase the risk of cancer.
Shares of Lumber Liquidators Holdings Inc. rose $2.16 to $15.39 in morning trading Friday. The stock traded close to $70 early last year when revelations of the imported flooring emerged.