60 Minutes: Lumber Liquidators Sold Illegal Flooring

(RTTNews) - Trading of Lumber Liquidators Holdings Inc. (LL) was halted on Monday after its stock tanked 20 percent on a TV show, which claimed the company sold flooring that may not meet safety and health standards.

According to the TV interview program "60 Minutes" on CBS News, Lumber Liquidators sold flooring, which were manufactured in China, containing levels of formaldehyde that may not meet health and safety standards of California.

A investigation by CBS reporters discovered that the laminate flooring made in China failed to meet health and safety standards of California, as it contained higher levels toxic formaldehyde.

The "60 Minutes" tested flooring sold in Virginia, Florida, Texas, Illinois and New York for levels of formaldehyde, a cancer-causing chemical. "It turns out of the 31 samples of Chinese-made laminate flooring, only one was compliant with formaldehyde emissions standards. Some were more than 13x over the California limit. Both labs told us they had never seen formaldehyde levels that high," according to the CBS.

However, Lumber Liquidators claim its Chinese-made laminate flooring have been tested and are safe.

Last week, Lumber Liquidators shares took a beating after the company revealed an upcoming negative "60 Minutes" interview and possible criminal charges it could face.

The company also expects to face criminal charges under the Lacey Act from the DOJ.

LL is currently trading at $40.31, down $11.55 or -22.27%, on the NYSE.