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Flooring Company Facing Class Action Over Allegations That it Sells Defective Products Containing High Levels of Formaldehyde

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Company Facing Class Action Over Selling Defective Products

Company Facing Class Action Over Selling Defective Products


The first amended class action complaint has been filed against Lumber Liquidators alleging that some of the company’s flooring products fail prematurely, contain defects and have been associated with very high levels of the cancer-causing agent, formaldehyde.

Plaintiffs in the class action lawsuit allege that their Lumber Liquidators flooring is defective and prone to premature cracking, splitting, warping and shrinking sooner than claimed in the product’s warranty. According to the suit, consumers have also complained that Lumber Liquidator’s flooring contains significantly high levels of formaldehyde, a known carcinogen.

According to the National Cancer Institute, formaldehyde is classified as a known human carcinogen by the U.S. Environmental Protection Agency (EPA). Research has shown that workers exposed to formaldehyde have higher rates of some cancers, including leukemia and nasopharyngeal cancer.

On March 1, the news program “60 Minutes” aired a segment discussing the serious issues reported at Lumber Liquidators’ factories in China following a probe of factories that manufacture laminate flooring for the company. The manufacturer indicates that the flooring is “CARB 2” compliant with California standards; however, investigators discovered that, according to factory managers there, the lumber was not compliant. The report also revealed that some homeowners have chosen to rip up their Lumber Liquidators flooring, despite being financially unable to replace the flooring. According to the “60 Minutes” segment, hundreds of thousands of homes nationwide likely have the potentially defective Chinese flooring that is in excess of formaldehyde standards.

During the probe, investigators visited China-based factories, purchased several boxes of the flooring from retailers in California, including Lumber Liquidators, and conducted follow-up testing at certified laboratories. Although testing revealed that U.S.-made flooring contained formaldehyde, the levels of the carcinogen were acceptable in this country. The China-made samples, however, failed formaldehyde emissions standards.

The “60 Minutes” investigation also indicated that it purchased 31 boxes of China-made laminate flooring at stores in Virginia, Florida, Texas, Illinois, and New York. Subsequent testing showed that only one of the samples was in compliance with California formaldehyde emissions standards.

In a filing with the U.S. Securities and Exchange Commission (SEC), Lumber Liquidators stated: “On September 26, 2013, sealed search warrants were executed at our corporate offices in Toano and Richmond, Virginia by the Department of Homeland Security’s Immigration and Customs Enforcement and the U.S. Fish and Wildlife Service” seeking information regarding some of the “wood flooring products.”  In its filing, the company also indicated that the Department of Justice stated “that it is contemplating seeking criminal charges under the Lacey Act.”

breakinglawsuitnews.com disclaimer: This article: Flooring Company Facing Class Action Over Allegations That it Sells Defective Products Containing High Levels of Formaldehyde was posted on Wednesday, March 4th, 2015 at 4:12 pm at breakinglawsuitnews.com and is filed under Fraud Lawsuits, Product Liability Lawsuits.

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