from CNN Money
Lumber Liquidators (LL) disclosed on Wednesday that the Justice Department is seeking criminal charges against the company for violations under the Lacy Act, which bars imports of illegally logged wood, among other things.
The latest news comes amid allegations that some of Lumber Liquidator’s wood flooring may contain toxic chemicals.
The company came under fire in a March 1 “60 Minutes” report that claimed laminated flooring imported from China contained high levels of formaldehyde, a carcinogen.
Federal authorities had raided the company’s offices in Virginia in 2013, acting on search warrants for information about imports of certain wood flooring products.
The controversy is taking a toll on Lumber Liquidator’s bottom line.
Lumber Liquidators said Wednesday that net sales plunged nearly 13% in March from a year ago due to “unfavorable allegations surrounding the product quality of the company’s laminates sourced from China.”
Read the entire story from CNN Money here.
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