Lumber Liquidators Settles Class Action Claim
Lumber Liquidators Holdings reported it would settle all pending litigation related to the China-made laminate products sold by the flooring retailer for an aggregate settlement amount of $36 million. The $36 million will be used to settle all claims brought on behalf of the purchasers of the China-sourced products sold by the company Jan. 1, 2009 - May 31, 2015. The company signed agreement with complainants in two cases in the Eastern District of Virginia to contribute $22 million in cash and $14 million in store credit vouchers, according to the company.
Lumber Liquidators' sales and earnings began falling after its laminate flooring was featured in a February, 2015, 60 Minutes news story, which asserted that its China-made products had levels of formaldehyde that might not meet U.S. health and safety standards. The company said the settlement agreement does not constitute an admission by the company of any fault or liability.
"We are pleased to have entered into this memorandum of understanding (MOU), and welcome it as an important step toward resolving this legacy issue and moving forward," said Dennis Knowles, CEO of Lumber Liquidators.
For more information, visit www.lumberliquidators.com.