A district court has approved Lumber Liquidators’ $36 million settlement in a class-action lawsuit filed on behalf of 760,000 customers who purchased the company’s Chinese-made laminate flooring between 2009 and 2015, according to CBS News.
The lawsuit was filed in the wake of a 60 Minutes exposé in March 2015 that reported the company’s laminate flooring, manufactured by a supplier in China, contained levels of formaldehyde that exceeded the California Air Resource Board (CARB)’s limits for formaldehyde emissions. The company received preliminary approval for the $36 million settlement in June.
Lumber Liquidators, which initially disputed the 60 Minutes report’s findings, was also fined $2.5 million by CARB in 2016 for the formaldehyde emissions violations. The company stopped selling the Chinese-manufactured laminate flooring in May 2015.
The company’s stock took a significant hit following the report, and its profits are still climbing back more than three years later. Its stock price reached a peak in November 2013 at $119.44 per share and crashed to $27.95 after the company announced the 60 Minutes episode would air. Its stock as of publication of this article was trading at $13.05 per share.
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