Lumber Liquidators’ stock is nose-diving again following an update from the “60 Minutes” investigation and a number of class action lawsuits.
Shares of LL were down more than 14% in afternoon trading. It had fallen to a 52-week low of $US27.82 per share.
On March 1,“60 Minutes” and Anderson Cooper aired a damning report about Lumber Liquidators — America’s largest specialty retailer of hardwood floors. The report found that Lumber Liquidators appeared to be selling laminate flooring from China with levels of formaldehyde that’s higher than what’s permitted under California law. High levels of formaldehyde have been tied to a number of health concerns.
Lumber Liquidators said in a statement that they the believed “60 Minutes” used “an improper test method in its reporting.”
A week after the story aired, “60 Minutes” said that they have been contacted by regulators.
“After the story aired, the Consumer Products Safety Commission requested the results of the tests 60 Minutes commissioned on that flooring, which we provided. We have also been flooded with mail from viewers concerned about their own laminate floors,” “60 Minutes” said in an update on their site.
On Monday, a number of class action lawsuits were also filed against the hardwood retailer.
Here’s a chart of today’s trading activity:
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