Lumber Liquidators Investigation Sparked By CBS Report Closes
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NEW YORK (CBSDFW.COM/AP) — Federal regulators are closing an investigation of Lumber Liquidators after the company agreed not to resume sales of Chinese-made laminate flooring.
Shares of Lumber Liquidators Holdings Inc. soared 9 percent at the open of trading Friday.
The 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, chemical known to cause cancer.
At the time of the report in 2015, the company said that more than 26,000 kits had been given out and the vast majority of those tested and returned fell within some health guidelines.
The U.S. Consumer Production Safety Commission says Lumber Liquidators has agreed to continue to test the air quality of homes for people that bought the floors. The company will pay for removal of floors or any other changes needed if a home has high levels of formaldehyde.
The CPSC says 614,000 people bought the laminate flooring from 2011 to 2015.
(©2016 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)