TOANO, Va. – The Justice Department is seeking criminal charges against Lumber Liquidators in an ongoing investigation over imported products.
Shares are plunging, down 13 per cent before the opening bell.
In March a report on CBS’ “60 Minutes” said that Lumber Liquidators’ laminate flooring made in China contains high levels of formaldehyde. Lumber Liquidators Holdings Inc. has said that it complies with applicable regulations for its products.
In a regulatory filing Wednesday, Lumber Liquidators said that the Justice Department was seeking criminal charges against it under the Lacey Act.
The company, based in Toano, Virginia, also disclosed that it is aware of more than 100 pending class-action lawsuits against it related to its Chinese-made laminate flooring.