Lumber Liquidators (Photo : www.cnbc.com)
Lumber Liquidators fired back at its critics after losing at least a quarter of their stocks value last Monday, CNBC reported.
Lumber Liquidation is known in selling flooring with increased level of formaldehyde than what is allowed under California's health and safety standards. Their stocks value fell more than 25% in Monday's trading after being stopped from the opening bell until approximately 11:15 a.m. EST.
"60 Minutes," a segment of a CBS TV show that airs Sunday, confirmed that they test Lumber Liquidators' flooring in several states in the United States to check the products levels of formaldehyde, a cancer-causing chemical.
They also verified that of the 31 samples of Chinese-made laminate flooring; only one is within the allowed formaldehyde emissions level. Other products were 13 times over the California limit.
Lumber Liquidators said in an official statement that their product is within the applicable regulations, which includes California standards for formaldehyde emissions. It firmly believes that the CBS show has implemented an improper test method and added that they have the proper documentation to support every step of the production process.
The flooring retailer also alleged in a statement that its chairman had addressed the company's test methodology, but "60 Minutes" had chosen not to include that information.
On a separate report, Yahoo confirmed that shares in the flooring retailer industry had also fallen at about 43% over the last weekend, when the impending report was leaked.
According to reports, it was the founder and managing partner of Kase Capital Management, Whitney Tilson, who originally brought the story to the show and told the network that Lumber Liquidators might have something up their sleeves with regards to its own testing protocol and accused them of making the mistake with regards to testing, refuting Lumber Liquidation's claim of the bogus testing.
