DOJ seeking federal criminal charges against Lumber Liquidators

Lumber Liquidators is facing federal criminal charges and more than 100 lawsuits over claims that it sold toxic flooring to customers, the company said Wednesday.

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The Department of Justice is seeking criminal charges against Lumber Liquidators after a CBS “60 Minutes” investigation revealed the company was selling Chinese laminate flooring containing high levels of formaldehyde, a carcinogen, according to news reports.

Customers have also filed more than 100 lawsuits against Lumber Liquidators over the allegations.

Sock in the Toano, Va.-based company has plummeted to a little more than $26 a share since late February, shortly before the revelations, when shares were valued at close to $70.

The company’s stock dropped even further, by another 20 percent, Wednesday following news of the Justice Department’s criminal investigation.