Lumber Liquidators sued by shareholders

December 23, 2013 by

Market LeaderA 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.

Steve Larson
An experienced trial lawyer who handles both hourly and contingent fee cases, Steve has expertise in class actions, consumer cases, antitrust litigation, securities litigation, corporate disputes, intellectual property disputes, unfair competition claims, employment matters, and disputes involving family wealth. Steve regularly represents individuals and businesses in federal and state court and has obtained class-wide recovery in multiple class actions. A veteran practitioner, Steve's clients value his creative approach to resolving complex litigation matters.

Legal Disclaimer

The information contained in this blog does not constitute legal advice, and does not create an attorney-client relationship. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this blog.