The Consumer Product Safety Commission is expected to announce Tuesday what action it’s taking regarding the Chinese-made laminate flooring sold by Lumber Liquidators, The Post has learned.
CBS’s “60 Minutes” reported Sunday night that the federal agency has asked for results of its tests on the flooring of the Toano, Va.-based company.
The agency stopped short of saying it was investigating the company on Monday afternoon but promised full details soon.
CBS, citing its independent tests, had claimed the flooring sold by the nation’s largest hardwood flooring retailer contained levels of formaldehyde above the standard set by California’s Air Resources Board.
The stock has been in virtual freefall ever since, closing Monday at $27.95, down 16 percent — a two-year low.
Shortly after the report aired, Sen. Bill Nelson (D-Fla.) called three federal agencies to investigate, including the CPSC.
Last year, about 11 percent of Lumber Liquidator’s $1 billion in sales were in laminate flooring made in Chinese factories, which it insists is compliant with California’s standard.
Nelson said he wanted to know whether the company made false compliance claims, as the CBS report claimed.
CARB has found excessive formaldehyde in some products and is investigating, but it would not disclose the companies under investigation.
If a company is found to be selling a product that doesn’t meet standards, it could be forced to pull it off shelves, said Lynn Baker, an air-pollution specialist at CARB.
In addition to the regulatory issues, Lumber Liquidators faces numerous lawsuits from shareholders and investors, in states as farflung as California, Massachusetts and Florida.
Chairman Tom Sullivan and Chief Executive Robert Lynch also have been sued for insider trading in Delaware Chancery Court.