A shareholder of Lumber Liquidators has filed a class action suit alleging that company executives made false and misleading statements about the sourcing of its wood products.
Lumber Liquidators, based in Toano, Virginia, has been under investigation by federal authorities on suspicion of importing illegally logged wood products from Russia, through China, as well as importing wood flooring tainted with excess formaldehyde, the suit says.
The company’s stock price plunged when allegations began to surface this summer, and again when federal search warrants were served at corporate headquarters in September.
The stock has since rebounded to around $100 a share as of today, but the investor alleges damages occurred from the plunge.
Lumber Liquidators is a nationwide retailer of hardwood, bamboo, cork and laminate floors. It has stores in Norfolk and Virginia Beach and warehouses in Suffolk and Hampton.
At the time of the raid, the company said it was cooperating with the government.
