NEW YORK, April 24, 2015 /PRNewswire/ -- Lawyers at Dunnam & Dunnam are investigating claims against certain officers and directors of Lumber Liquidators (NYSE: LL). Concerned LL shareholders who have owned shares in the company prior to September, 2013 are encouraged to contact Hamilton Lindley by clicking here.
The investigation focuses upon allegations that in 2011, Lumber Liquidators purchased Sequoia Floorings, a Chinese entity. The purchase of Sequoia Floorings cut out the middleman and increased the company's profit margins from 33% to 41%, and in turn, that drove up the stock price. According to news reports, several formaldehyde tests have been conducted on the product and found the laminate wood from China contains 5 – 25x more than is permitted by law. Government agencies also raided Lumber Liquidator's offices and their investigations are continuing, which could result in criminal charges and civil penalties.
CEO and Founder Tim Sullivan never sold a share of his stock until November of 2012. At that time he sold $30 million of his stock – shortly before the government raid. The law firm's investigation seeks to determine whether shareholder action could restore money and corporate controls at Lumber Liquidators so that the company improves stockholder value.
Securities lawyers at Dunnam & Dunnam have significant experience enforcing shareholder rights against companies accused of wrongdoing. If you held shares in Lumber Liquidators prior to September, 2013, or have information about this situation, please contact lawyer Hamilton Lindley at [email protected], call toll free at (844) 702-2990 or visit http://www.dunnamlaw.com/LL.
Dunnam Dunnam Harmon West Lindley & Ryan LLP
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SOURCE Dunnam & Dunnam