'60 Minutes' expose sends Lumber Liquidators shares tumbling
New York -- The "60 Minutes" episode alluded to in last week's Lumber Liquidators earnings conference call was apparently more damning than some analysts expected.
As a result, the company's shares tumbled Monday morning, with pending news prompting a pause in trading that resumed again after the stock price fell more than 24%.
The segment highlighted the retailer's alleged practice of using Chinese-manufactured laminate flooring containing high levels of formaldehyde, violating California's health and safety codes. Undercover reporters were shown talking to factory managers who admitted to using false labeling certifying that the products complied with regulations.
Lumber Liquidators continues to stand by its products, maintaining that the claims against the company are made by short-selling investors.
Watch the episode below.
As a result, the company's shares tumbled Monday morning, with pending news prompting a pause in trading that resumed again after the stock price fell more than 24%.
The segment highlighted the retailer's alleged practice of using Chinese-manufactured laminate flooring containing high levels of formaldehyde, violating California's health and safety codes. Undercover reporters were shown talking to factory managers who admitted to using false labeling certifying that the products complied with regulations.
Lumber Liquidators continues to stand by its products, maintaining that the claims against the company are made by short-selling investors.
Watch the episode below.