Lumber Liquidators Reports Loss After Chinese Flooring Report

A recent article on cnbc.com reported that Lumber Liquidators’ stock fell after the company posted a loss for the second quarter of 2015. Analysts said the loss stems from the “60 Minutes” report that the company’s flooring from China contained levels of formaldehyde above what is considered safe by U.S. emissions standards. The company was also told by the Justice Department to expect criminal charges to be filed against it. The issues with the flooring caused an inventory shortage which led to lower than expected revenues for the company. The company said it is discussing ways to resolve the product issues with multiple agencies.

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