Lumber Liquidators Under Fire For Selling 'Toxic' Laminate Floor From China

(RTTNews) - Trouble is piling up for Lumber Liquidators Holdings Inc. (LL) 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.

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.

U.S. Senator Bill Nelson has asked federal regulators to investigate whether laminate flooring sold by Lumber Liquidators poses a health risk to public and whether the company broke federal laws by making false marketing claims.

Senator Nelson, a Florida Democrat, has sent letters to the Consumer Product Safety Commission or CPSC, the Centers for Disease Control and Prevention or CDC and the Federal Trade Commission or FTC. Nelson has asked the regulators to open an investigation on the laminate flooring.

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 of toxic formaldehyde, a cancer-causing chemical.

Formaldehyde can cause cancer, asthma, chronic respiratory irritation and other ailments, including skin and breathing problems, with a significantly greater risk of health problems in children. However, Toano, Virginia-based Lumber Liquidators claim that its Chinese-made laminate flooring have been tested and are safe.

Lumber Liquidators shares took a beating in late February after the company revealed it was aware of the impeding "60 Minutes" segment and possible criminal charges it could face. The company also may face criminal charges under the Lacey Act from the DOJ.

Meanwhile, the law firms Weil, Quaranta, P.A. of Miami and Los Angeles, and Babbitt & Johnson, P.A. of West Palm Beach said Wednesday that have filed a federal class action suit against Lumber Liquidators for selling Chinese-made laminated wood floors containing dangerous levels of toxic formaldehyde.

According the law firms, the lawsuit follows the March 1 "60 Minutes" report about the Chinese manufacturer and supplier to Lumber Liquidators labeling the toxic laminate floor as being compliant with "CARB regulations in the State of California." The law firms noted that, according to independent tests, the laminate floor exceeded the formaldehyde toxicity limits by six, seven, or even 20 times.

CARB is an acronym for the California Air Resources Board, promulgating safety standards adopted federally in 2010, with a completed phase-in scheduled later this year.