The Implications of the Lumber Liquidators Formaldehyde Exceedance Scandal

A man in a suit sits on a stool in front of a digital background with a book open and a woman in a striped shirt and jeans reading at a desk. The background features an open book displaying the words 'LUMBER LIQUIDATORS' and a photo of a woman reading. The scene appears to be part of a video presentation about a legal settlement related to Lumber Liquidators.
Person removing a wooden floorboard in a room with yellow walls and a black floor, with tools and loose wood pieces on the floor.

The report also uncovered that some of the company’s suppliers had falsely labeled their products as compliant with California Air Resources Board (CARB) regulations.

Following the broadcast, the LLC company's stock continued to decline, and in Q1 2015, it reported a $7.8 million loss.

The company later agreed to pay a $33 million fine to settle criminal charges related to misleading investors about the safety of its Chinese-made flooring.

Overall, this scandal inflicted significant financial and reputational damage on Lumber Liquidators.

Close-up of purple test tubes held in a metal rack.
Close-up of a man with short brown hair and blue eyes during an interview on '60 Minutes'
A person in a black blazer is leaning on a counter in what appears to be a warehouse or store, with shelves of wooden items in the background. The video contains subtitles that say, 'No, no, no... I have to be honest with you. It's not CARB 2.'