Lumber Liquidators settled a legal dispute with Cabinets To Go, a company owned by its founder and former CEO, Tom Sullivan, Richmond BizSense reports.
Lumber Liquidators settled a legal dispute with Cabinets To Go, a company owned by its founder and former CEO, Tom Sullivan, Richmond BizSense reports.
Lumber Liquidators filed the lawsuit against Cabinets To Go earlier this year, alleging Sullivan had violated a signed agreement to not directly compete with Lumber Liquidators by selling hardwood flooring. Lumber Liquidators was seeking $10 million in damages.
Cabinets To Go asked that the lawsuit be dismissed, but in early November a judge put the lawsuit on the track for trial. The two companies reached an undisclosed settlement several days later, according to the report.
Cabinets To Go continues to sell hardwood flooring, according to its website.
Sullivan founded Lumber Liquidators in 1994 and served as its board chairman from 1994–2015. He launched Cabinets To Go in 2008.
In September, after criticizing current Lumber Liquidators management, Sullivan proposed negotiations for a possible merger between Lumber Liquidators and Cabinets To Go. The proposal caused Lumber Liquidators stock to surge nearly 9%, after which Sullivan backed out and sold 80% of his stake in the company at a profit of nearly $5 million, according to Bloomberg.
