Boston, MAAs more Lumber Liquidators lawsuits are filed, a multidistrict litigation has been set up in Virginia. Meanwhile, the company has announced that it will stop the sale of certain products. The announcement comes after an announcement that Lumber Liquidators faces possible criminal charges from the US Department of Justice, and was shortly followed with an announcement of the resignation of the company's CEO, Robert Lynch.
According to Reuters (6/16/15), more than 100 lawsuits have been consolidated for pretrial proceedings against Lumber Liquidators.
Lumber Liquidators has been under fire for certain composite flooring, which allegedly contains excessive amounts of formaldehyde. According to reports, including a 60 Minutes (3/1/15) report, certain laminate flooring made in China failed emissions testing for its high levels of formaldehyde. Formaldehyde is a carcinogen, linked to respiratory problems and some cancers.
Following the 60 Minutes report, lawsuits were filed by homeowners who alleged they suffered health problems due to the laminate flooring. Lawsuits alleged plaintiffs suffered shortness of breath and fatigue because of the formaldehyde exposure. Meanwhile, other lawsuits alleged that the laminate flooring negatively affected home values.
In early May, Lumber Liquidators announced it was suspending sales of all laminate flooring from China, pending completion of a review of Chinese products. In announcing the suspension, Lumber Liquidators said the suppliers certified and labeled the product as being compliant with California formaldehyde standards.
In the same press release, Lumber Liquidators said independent, accredited laboratory testing found that more than 97 percent of its customers’ homes had levels of formaldehyde that fell within acceptable ranges established by the World Health Organization.
“Despite the initial positive air quality testing results we have received, we believe it is the right decision to suspend the sale of these products,” said Robert Lynch, then-CEO.
Later in May, Lumber Liquidators announced Lynch had unexpectedly resigned as company president and CEO.
Lumber Liquidators also faces possible criminal charges from the Department of Justice under the Lacey Act, which bans the use of illegally sourced products, including wood products.
The consolidated lawsuits are In re: Lumber Liquidators Chinese-Manufactured Flooring Products Marketing, Sales Practices and Products Liability Litigation, in MDL 2627, before US District Judge Anthony Trenga in the Eastern District of Virginia.
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