Schubert Firm Investigates Lumber Liquidators' Top Executives

SAN FRANCISCO, March 18, 2015 /PRNewswire/ -- Shareholder and consumer rights law firm Schubert Jonckheer & Kolbe LLP has launched an investigation into whether the officers and directors of Lumber Liquidators, Inc. (NYSE: LL) breached their fiduciary duties to Lumber Liquidators and its shareholders by exposing it to civil, and possibly criminal, liability for selling flooring containing illegally sourced wood products and excessive amounts of formaldehyde.

On February 25, 2015, Lumber Liquidators announced that the Department of Justice is investigating criminal charges against the Company for violations of the Lacey Act, which prohibits the importation and trade of illegally sourced wood products.

Less than a week later, on March 1, 2015, 60 Minutes ran a story in which some Chinese manufacturers of Lumber Liquidators' laminate flooring admitted that the flooring did not comply with California's formaldehyde emissions standard but was nonetheless labelled as compliant. Formaldehyde is found in the glue that holds the wood particles together in the flooring boards. According to the 60 Minutes report, some of Lumber Liquidators' laminate flooring contained thirteen times the amount of formaldehyde permitted under California law. Formaldehyde, a colorless and odorless chemical compound, has been found to cause myeloid leukemia and other cancers at high levels.

Since February 24, 2015, several analysts have downgraded Lumber Liquidators' stock, including Morgan Stanley and Goldman Sachs; Lumber Liquidators has cut its forward guidance; the Company's stock price has dropped more than 50%; and stockholders have filed class actions against the Company.

If you are a long-term holder of Lumber Liquidators stock and wish to obtain additional information about the Schubert Law Firm's investigation and your legal rights, please contact Miranda Kolbe by email at [email protected], by telephone at 415-788-4220, or fill out the form on our website at http://classactionlawyers.com/lumberliquidators.

About Schubert Jonckheer & Kolbe

Schubert Jonckheer & Kolbe has extensive experience in prosecuting securities claims, representing investors throughout the nation in shareholder lawsuits. Attorney advertising. Prior results do not guarantee similar outcomes.

SOURCE Schubert Jonckheer & Kolbe LLP