Lumber Liquidators Agrees To fine

Will Pay $33 Million for Misleading Investors

March 12, 2019 - 1:37 pm

Richmond, Va. (Newsradiowrva.com) -  Lumber Liquidators has agreed to pay a $33 million fine after being accused of misleading investors about the formaldehyde emissions from their laminate floring.  The flooring failed testing, but the Toano-based company filed statements denying the allegations.  The allegation was part of a 2015 epidode of "60 Minutes."

“This penalty should serve as a warning to other corporations who seek to mislead investors,” said David W. Archey, newly appointed Special Agent in Charge of the FBI’s Richmond Field Office. 

Pursuant to its agreement with the Department of Justice, Lumber Liquidators agreed to pay a total criminal penalty of $33 million to the United States, including a criminal fine of approximately $19 million, and approximately $14 million in forfeiture. This amount represents the company’s net profits from the sale of 100 percent of its Chinese laminate from on or about Jan. 16, 2015 through on or about May 7, 2015.

Lumber Liquidators also agreed to implement rigorous internal controls and cooperate fully with the Department’s ongoing investigation, including its investigation of individuals. Under the DPA, prosecution of the company for securities fraud will be deferred for an initial period of three years to allow Lumber Liquidators to demonstrate good conduct.