The first lawsuit concerning the formaldehyde content of certain Lumber Liquidators (Toano, Va.) products was dismissed Monday.
The lawsuit, filed by Global Community Monitor in July 2014, pre-dating the “60 Minutes” investigation, was about whether Lumber Liquidators provided “clear and reasonable” notice about its products health risks, according to Bloomberg. The lawsuit specifically claimed Lumber Liquidators’ Chinese-made laminate flooring products emitted formaldehyde at a rate that would require a consumer warning label under the state’s CARB Phase II standard. Global Community Monitor based its claims on tests it had conducted on more than 50 pieces of flooring.
After the judge’s decision to dismiss the case went public, the company’s stock went from $12.82 to $14.75 Tuesday morning. The stock finished the day at $14.19.
A statement from the company said, “We are pleased that the Court has ruled in Lumber Liquidators’ favor. This marks an important step forward for our company as we continue to focus on driving operational performance.”
Monday's dismissal is one of two recent “wins” for the company. At the end of March, the company paid $2.5 million to CARB to settle the agency’s claims that its Chinese-made laminate flooring exceeded state limits on formaldehyde. Lumber Liquidators did not concede wrongdoing, according to the terms of the settlement.
Despite the recent rally, company shares are down nearly 80 percent from $69.22 in February 2015, before the company announced the “60 Minutes” investigation.
More than 100 lawsuits were filed against the company in the months after the investigation aired, the majority of which have yet to be decided.
Article updated April 6 to clarify the day of the dismissal.
