Lumber Liquidators (Toano, Va.) stock, in wake of the company’s first profit in two years, jumped from $24.71 on July 31 to $33.59 the next day. Even more noteworthy for the beleaguered company is that the stock has maintained that level, hovering around $35.
Lumber Liquidators (Toano, Va.) stock, in wake of the company’s first profit in two years, jumped from $24.71 on July 31 to $33.59 the next day. Even more noteworthy for the beleaguered company is that the stock has maintained that level, hovering around $35.
Although $35 is far from the company’s peak stock value of $119.44 recorded in 2013, it’s the highest the stock has been since March 6, 2015.
Here’s a timeline of news events that led to this moment for Lumber Liquidators.
Feb. 26, 2015: Then CEO Robert Lynch tells investors a soon-to-air “60 Minutes” episode could make the company look bad.
March 2, 2015: The market opens the morning after the investigation aired, and the trading of Lumber Liquidators stock is halted after it plunges almost 25 percent in value.
March 5, 2015: Three class action lawsuits are filed, the first of many about the allegations made in the “60 Minutes” investigation. Nine law firms announced investigations into the company. Florida Sen. Bill Nelson requests a federal investigation.
March 12, 2015: The company begins to offer free air quality testing and pledges to consider reinstallation of its product if customers are not satisfied.
March 25, 2015: The Consumer Products Safety Commission confirms it is investigating if the company sold laminate flooring with formaldehyde levels higher than CARB Phase II limits.
April 6, 2015: Lumber Liquidators announces sales increased during the first quarter, despite the controversy. More than 75 lawsuits against the company have been filed.
May 4, 2015: The Department of Justice announces it is seeking charges against Lumber Liquidators under the Lacey Act. More than 100 lawsuits have been filed against the company.
May 7, 2015: The company suspends all sales of Chinese-made laminate flooring. About 2,600 households have used Lumber Liquidators air quality tests to test inside their homes, and 97 percent of tests indicate air concentrations of formaldehyde were within guidelines set by the World Health Organization.
May 27, 2015: CEO Robert Lynch resigns “unexpectedly,” along with CFO Daniel Tarrell, and the stock plummets.
June 2, 2015: Chief Compliance Officer Ray Cotton, hired in February 2014 after the government raided Lumber Liquidators headquarters for evidence pertaining to Lacey Act violations, resigns.
June 15, 2015: The company fires Chief Merchandising Officer William Schlegel. Marco Pescara, the chief marketing officer since 2006, takes over.
Aug. 19, 2015: More than 130 lawsuits filed against the company pertaining to the allegations made in the “60 Minutes” investigation are consolidated. The company hires a new chief compliance officer, Jill Witter.
Oct. 7, 2015: The company agrees to plead guilty in a settlement with the Department of Justice over violations of the Lacey Act and customs law. It pays $10 million in fines.
Nov. 4, 2015: New CEO John Presley is appointed. The company reports a third quarter loss of $8.5 million.
Dec. 16, 2015: Short-seller Whitney Tilson, whose tips played a role in the investigation into Lumber Liquidators, says the company is “not evil” and removed his short position against the company’s stock.
Feb. 3, 2016: The Centers for Disease Control and Prevention, contracted by the CPSC, says the Chinese-made laminate sold by Lumber Liquidators poses only a marginal cancer risk.
Feb. 22, 2016: CDC finds an error in its original report. Its revised report says the Chinese-made laminate has three times the cancer risk as was previously reported—between three and 30 cases of cancer per 100,000 people.
Feb. 29, 2016: The company reports it lost $56.5 million in 2015. Dennis Knowles is hired as COO.
March 23, 2016: The company pays $2.5 million to CARB to settle the agency’s claim that its Chinese-made laminate flooring exceeded state limits on formaldehyde emissions.
April 5, 2016: A lawsuit about the formaldehyde levels of the company’s Chinese-made laminate flooring is dismissed. This lawsuit predated the “60 Minutes” investigation.
July 27, 2016: The company puts aside $26 million to pay investors who bought stock between Feb. 22, 2012, and Feb. 27, 2015.
Aug. 17, 2016: The plaintiffs of the lawsuit dismissed April 5 are ordered to pay Lumber Liquidators $100,000 for the costs associated with the lawsuit.
Sept. 12, 2016: The company hires CFO Martin Agard and CIO Christopher Thomsen.
Nov. 9, 2016: CEO John Presley resigns and is succeeded by COO Dennis Knowles.
Nov. 21, 2016: Lumber Liquidators pays $50 million to settle two lawsuits filed by stockholders.
Jan. 4, 2017: Lumber Liquidators founder Tom Sullivan resigns from the board of directors and exits the company following the company’s decision to eliminate his position and turn him into a non-employee director on the board.
Aug. 1, 2017: Lumber Liquidators, following two years of profit losses, turns a profit of $4.47 million the second quarter.
Aug. 11, 2017: Stock value sits at $36.24 as of press time.
