Lumber Liquidators Fights Back Against Critics, Shares Soar

(RTTNews) - Shares of Lumber Liquidators Holdings, Inc. (LL) soared Thursday after the hardwood floor retailer insisted on the safety and quality of its products, particularly the China-sourced laminates.

Lumber Liquidators, known as the Wal-mart for flooring, defended itself from recent claims that it sold 'toxic' laminate floor from China which contained high levels of a carcinogen.

According to the TV interview program "60 Minutes" which aired March 1 on CBS, Lumber Liquidators sold flooring manufactured in China containing levels of formaldehyde that may not meet health and safety standards of California.

An investigation by CBS reporters discovered that the laminate flooring made in China failed to meet the standards as it contained higher levels of toxic formaldehyde, a cancer-causing chemical.

Since the airing of the program, trouble has been piling up for Lumber Liquidators from different quarters, with a U.S. Senator calling for a federal probe into the specialty retailer of hardwood flooring, while two law firms said they have filed a class action lawsuit against the company.

Independent tests had claimed that the laminate floor exceeded the formaldehyde toxicity limits by six, seven, or even 20 times.

The company said it sources more than half of their products within the U.S. The company reassured that its products are safe and that it takes "reasonable prudent precautions" to ensure its suppliers conform to airborne toxic control measures.

The company added that it will offer indoor air quality testing administered by a third party to some customers at no cost as customers are understandably concerned after the TV report because the sensationalized reports provide little context.

Lumber Liquidators shares took a beating since late February after the company revealed it was aware of the impeding "60 Minutes" segment and possible criminal charges it could face.

In Thursday's regular trading session, LL is currently trading at $34.15, up $1.42 or 4.34% on a volume of 3.75 million shares. In the past 52-week period, the stock has been trading in a range of $27.79 to $108.40.