Federal Safety Watchdog Confirms Probe Of Lumber Liquidators

(RTTNews) - U.S. Consumer Product Safety Commission on Wednesday confirmed an investigation on the allegations against the China sourced laminates of Lumber Liquidators Holdings Inc. (LL). The shares of the hardwood floor retailer surged nearly 8 percent in early morning trading on an unusual volume.

An investigative report by CBS '60 minutes' has alleged that the laminate flooring of the company contained higher levels of Formaldehyde, a cancer causing chemical. However, Lumber Liquidators have denied the allegations and said the flooring have been tested and are safe.

On March 5, U.S. Senator Bill Nelson has asked federal regulators to investigate whether laminate flooring sold by Lumber Liquidators poses a health risk to public. He also requested to confirm whether the company broke federal laws by making false marketing claims.

The stock that closed on February 27 at $51.86 has been on a downfall since then. On Tuesday it closed at $28.83 on a volume of 3,575,500.

Currently, the shares are trading at $30.58, up 6.28 percent on a volume of 9.85 million shares.