Lumber Liquidators settles in $36 million deal; saga concludes
October 16, 2018 | 12:38 pm CDT
Lumber Liquidators floor2.jpg
TOANO, Va. - The saga of hardwood flooring giant Lumber Liquidators finally has concluded this week. Lumber Liquidators will pay $36 million to settle a lawsuit filed on behalf of 760,000 customers who bought its Chinese-made laminate flooring between 2009 and 2015.
 
Under the terms of the settlement, Lumber Liquidators will contribute $22 million in cash and provide $14 million in-store-credit vouchers for a total of $36 million to settle all claims brought on behalf of purchasers of the Chinese-manufactured laminate flooring it sold between January 1, 2009 and May 31, 2015. 
 
 "We are pleased to have entered into this MOU, and welcome it as an important step toward resolving this legacy issue and moving forward,"  said Dennis Knowles, Chief Executive Officer of Lumber Liquidators.
 
The plaintiffs are largely homeowners who began ripping out their floors after CBS News 60 Minutes program did an expose on the flooring. Reporters interviewed managers of factories in China who were producing laminate flooring with glues containing formaldehyde, then packaging it boxes labeled as CARB compliant - erroneously indicating it met California Air Resource Board requirements for minimal formaldehyde contents. 
 
The scandal brought down the CEO and other executives at Lumber Liquidators, and its stock price and sales and share prices fell precipitously. The revelations also led the Environmental Protection Agency to issue standards on formaldehyde in panels.

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About the author
Robert Dalheim

Robert Dalheim is an editor at the Woodworking Network. Along with publishing online news articles, he writes feature stories for the FDMC print publication. He can be reached at [email protected]

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Bill Esler | ConfSenior Editor

Bill wrote for WoodworkingNetwork.com, FDMC and Closets & Organized Storage magazines. 

Bill's background includes more than 10 years in print manufacturing management, followed by more than 30 years in business reporting on industrial manufacturing in the forest products industries, including printing and packaging at American Printer (Features Editor) and Graphic Arts Monthly (Editor in Chief) magazines; and in secondary wood manufacturing for WoodworkingNetwork.com.

Bill was deeply involved with the launches of the Woodworking Network Leadership Forum, and the 40 Under 40 Awards programs. He currently reports on technology and business trends and develops conference programs.

In addition to his work as a journalist, Bill supports efforts to expand and improve educational opportunities in the manufacturing sectors, including 10 years on the Print & Graphics Scholarship Foundation; six years with the U.S. WoodLinks; and currently on the Woodwork Career Alliance Education Committee. He is also supports the Greater West Town Training Partnership Woodworking Program, which has trained more than 950 adults for industrial wood manufacturing careers. 

Bill volunteers for Foinse Research Station, a biological field station staddling the border of Ireland and Northern Ireland, one of more than 200 members of the Organization of Biological Field Stations.