Lumber Liquidators settles $26M class-action lawsuit

Home Inside FCNews Lumber Liquidators settles $26M class-action lawsuit

Toano, Va.—Lumber Liquidators has settled a class-action investor lawsuit by issuing 1 million shares of its common stock with a value of $16.8 million, according to a recent regulatory filing. The shares were issued Thursday, Nov. 17. The value was based on a $16.76 per share closing price.
According to the filing, the U.S. District Court in Richmond granted final approval of the proposed settlement. The court also entered a final judgment dismissing all claims in lawsuits involving securities and derivatives.

As part of the securities lawsuit, the company expects to contribute, through its insurers, $26 million in cash to a settlement fund in the fourth quarter, according to the filing.

The derivatives lawsuit will be settled for a combination of corporate governance changes, the $26 million cash payment and attorneys’ fees of $5 million.
Lumber Liquidators has dealt with lawsuits from investors and been investigated by federal agencies since “60 Minutes” ran a segment in March 2015 reporting that the company sold flooring made in China that had unsafe formaldehyde levels, which could increase cancer risks.

The company repeatedly has said the flooring poses no safety issues and it has tested the air quality in more than 32,000 homes.

Must Read

Välinge commits to FSC certification

Viken, Sweden—Välinge Innovation has shared new information about its sustainability mission and its FSC-certified Välinge Flooring products. Välinge said the FSC certification was a...

Unilin introduces pressed bevel technology

Waregem, Belgium— Unilin Technologies introduced its patented pressed bevel technology for resilient flooring to its continuously growing licensing base. With the new technology, the edges...

Carpet Design Awards finalists selected

Hannover, Germany—An international jury of design and carpet industry experts have selected finalists for the Carpet Design Awards 2021. Domotex said 27 finalists reached the...

Pergo Extreme to sponsor virtual summit

Calhoun, Ga.—Pergo Extreme will sponsor Country Living and Good Housekeeping’s virtual Makeover Takeover Renovation Summit, Mohawk said. During the free summit from Wed., May...

Marazzi launches Marble Obsession

Dallas, Texas—Marazzi launched its Marble Obsession porcelain and ceramic tile collection. The new collection is a marble-look assortment featuring an array of three marble...

Natural Stone Institute opens award entries

Oberlin, Ohio—The 2021 entry period for the Natural Stone Institute Awards Program is now open. The association said it opened entries for the Pinnacle...
Some text some message..