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Lumber Liquidators to pay $33M for securities fraud

Jaclyn Jaeger | March 14, 2019

Lumber Liquidators Holdings, a discount retailer of hardwood flooring, will pay a total of $33 million in criminal and regulatory penalties for misleading investors concerning the sale of its laminate flooring from China to its customers in the United States.

The charges, brought separately by the Securities and Exchange Commission and the Department of Justice, are the result of materially false and misleading statements that Lumber Liquidators made to investors in March 2015 broadly denying allegations that aired on a “60 Minutes” news segment alleging the company was selling laminate flooring from China that contained high levels of formaldehyde that exceeded regulatory standards. The news program showed undercover video of three of Lumber Liquidators’ Chinese laminate suppliers stating they provided the company with products that did not comply with regulatory...

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