Lumber Liquidators Stock Dropped as Cancer Risk Arose
By Staff Writer
On February 18, Centers for Disease Control and Prevention warned of high level carcinogen in Lumber Liquidators' laminate flooring. Following the result, the company's s stock plunge. Now, the company is trying hard to win back its customers and investors trust.
Last year, a TV reportage in CBS' 60 Minutes reported a cancer threat to Lumber Liquidators' wood products which were imported from China, due to its high levels of formaldehyde. Following the report, the company stopped selling the product and providing free air quality tests for its customers.
CDC began to test imported floor products from the Toano, Virginia-based company. However, CDC admitted that it used an incorrect value for ceiling height. CDC then revised its testing method and according to its latest statement, the federal agency said, "the health risks were calculated using airborne concentration estimates about 3 times lower than they should have been,"
In the newly updated testing method, CDC found the amount of formaldehyde in the company's wood flooring product was actually three times higher than previous test. Formaldehyde is a known carcinogen which caused leukimia and cancers at high levels. The chemical compound also causes respiratory issues and eye, nose and throat irritation.
As Market Watch reported, CDC estimates the risk of cancer at six to 30 cases per 100,000 people. The result is much higher than previous estimation of two to nine cases per 100,000 people.
CDC also explained homeowners can reduce the amount of formaldehyde in their houses by letting in fresh air fow few minutes a day. It is also unecessary to test air quality in the house unless there is a strong smell of chemical compound, or in the case of someone in the house is having symptoms of burning of the eyes, nose and throat.
According to ABC News, the company's stock slid 19.8% or $2.81 and closed at $11.40 on Monday. Since last year, the company's shares have dropped more than 83%.
In a separate case, last October, Lumber Liquidators pleaded guilty for the environmental crimes. The company admitted to make false declarations on import documentation regarding the source of some of its flooring. As a result, the company must pay $13 million settlement to the Justice Department for illegal import of hardwood flooring.
The company is now struggling to restore its customers and investors trust to its product and reputation. In Sunday's edition of the New York Times, as CNN Money reported, the company ran a full-page advertising saying, "Recent media accounts have created confusion about the products we sell and whether or not they are impacted by a report from the [CDC]."
Lumber Liquidators also said that the CDC finding does not apply to other laminate floor product, as they were made in North America or Europe. After sufering a plunge in stock and reputation, the company is trying hard to win back the trust from its customers and investors.