Lumber Liquidators stock slammed by ‘60 Minutes’ report

NEW YORK (MarketWatch) — Shares of Lumber Liquidators fell sharply Monday, after a “60 Minutes” report alleged the U.S. retailer of hardwood flooring has installed Chinese-made laminate flooring in many American homes that contain far higher-than-accepted levels of formaldehyde, a chemical known to cause cancer.

Shares of the Toano, Va.–based Lumber Liquidators LL, +5.34% were down 23.2% at $39.47 in premarket trade.

In a damning report, the “60 Minutes” team said three certified labs testing formaldehyde levels in the company’s Chinese-made laminate found it far exceeded California emissions standards.

Formaldehyde can cause myeloid leukemia and other cancers at high levels, as well as respiratory issues and eye, nose and throat irritation even at low levels.

What’s more, all laminate flooring carried by Lumber Liquidators bears a label indicating that it is CARB Phase 2 Compliant, referring to the California Air Resources Board, which sets standards for formaldehyde emissions in wood flooring. Those standards were adopted by Congress in 2010 in a law that is set to take effect across the U.S. this year.

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