Lumber Liquidators on Tuesday agreed to pay $33m to settle US charges of fraud over the company’s initial response to accusations that laminate flooring made in China did not comply with health regulations.
The Department of Justice said Lumber Liquidators will pay a criminal fine of about $19m and $14m in forfeiture. The total amount includes a separate $6m settlement with the Securities and Exchange Commission. The DoJ settlement also includes a deferred prosecution agreement contingent on the company meeting certain requirements.
The charges are related to public statements made by Lumber Liquidators, a Virginia-based seller of hardwood and laminate flooring, following an expose on the CBS program, “60 Minutes,” that aired on March 1, 2015. The show alleged that Chinese-made laminate products sold by Lumber Liquidators in the US emitted unsafe levels of formaldehyde.