Lumber Liquidators, under fire over allegations it sold formaldehyde-laced flooring that was falsely labeled CARB compliant, is now getting support from investment analysts.
|Lumber Liquidators was the subject of a 60 Minutes investigative report, which kicked off a storm of negative coverage. The flooring maker went on the offense, explaining its flooring sandwich seals in formaldehyde.|
Cantor Fitzgerald is now recommending its stock. And Raymond James, which commissioned tests that support the flooring manufacturer's case, found that Lumber Liquidators' flooring seals in formaldehyde, and if tested "non destructively" the flooring is CARB compliant.
Lumber Liquidators has been hit with multiple class action suits, most of them initiated by law firms specializing in the business of carrying on such litigation. Those cases allege either that Lumber Liquidators mislead investors, or that it misleads consumers in claims that its flooring is CARB compliant - meaning it does not give off formaldehyde gas in excess of California Air Resource Board (CARB) regulations.
Last week, for example, construction defect law firm Robertson & Associates filed a RICO class action lawsuit against Lumber Liquidators, Inc. and the companies it hired to conduct indoor air testing for formaldehyde in its customers’ homes.
Lumber Liquidators scored a loss in an anti-defamation case it brought against an environmental group, Global Community Monitor, or GCM. Last week, a judge threw out that case, citing First Amendment protection.
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