Lumber Liquidators Crumbles After CDC Cancer Warning

(RTTNews) - Customers of Lumber Liquidators holders were shocked by the latest report that the risk of cancer was 6 to 30 cases per 100 thousand people. The shares gapped open on Monday and are currently tumbling, down 19.07 percent on the NYSE.

The Center for Disease Control and Prevention revealed its revised report on February 18, lifting its earlier forecast of 2-9 cases. The company has been facing allegations that the laminates imported from China contained excessive levels of formaldehyde, a carcinogen that can induce myeloid cancers. Even at low levels, formaldehyde may cause nose, throat and eye irritation.

The company has stopped selling Chinese flooring products after the Consumer Product Safety Commission started an investigation. CBS "60 Minutes" has telecast a report on Lumber Liquidators' failure to comply with safety standards of California.