Lumber Liquidators stock plunges after after federal regulator revises its cancer-risk report. Fred Katayama reports.
Lumber Liquidators said Monday it significantly strengthened its quality controls for its flooring products. But investors ignored it. The company losing about quarter of its market value. A recent investigation from the federal Centers for Disease Control showed that people exposed to some types of laminate flooring sold by Lumber Liquidators were three times more likely to get cancer than it had previously estimated. The probe started after CBS's "60 Minutes" program reported last March that the company's laminates from China contained excessive levels of formaldehyde. On Sunday, 60 Minutes highlighted the revised report and said that, in its initial write-up, the CDC had forgotten to convert feet to meters in some calculations. Lumber Liquidators has suspended sales of all laminate flooring supplied from China.