Lumber Liquidators hit with $33 million penalty
Date: Friday, March 15, 2019
Source: American Shipper
Virginia-based flooring supplier haunted by 2015 missteps from investigation of defective, formaldehyde-tainted flooring imports from China.
The false statements were filed by Lumber Liquidators after the March 2015 airing of a “60 Minutes” program by CBS, which exposed the company’s sales of defective and formaldehyde-tainted flooring. At the time, the company claimed to comply with the California Air Resources Board regulations with its investors, although it knew two years earlier about the product failure.
In 2014, a U.S. laminate supplier informed Lumber Liquidators that it tested a Chinese laminate sample purchased from one of Lumber Liquidators’ stores in the U.S. and that the sample emitted high levels of formaldehyde.
Lumber Liquidators has paid other government penalties in recent years, including more than $13.15 million in criminal fines, community service and forfeited assets in early 2016 related to its import of hardwood flooring from China that was illegally harvested timber in the Far East.
At that time, the violation resulted in the largest financial penalty for timber trafficking under the Lacey Act, according to the Justice Department.