A lawsuit was filed by a current investor in Lumber Liquidators Holdings Inc (NYSE:LL) shares against certain directors of Lumber Liquidators Holdings and current long-term NYSE:LL stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 06/09/2015 -- An investor in shares of Lumber Liquidators Holdings Inc (NYSE:LL) filed a lawsuit against nine officers of Lumber Liquidators Holdings Inc. The plaintiff alleges that Lumber Liquidators' founder and its CEO together sold $19 million worth of stock at inflated prices before the company's problems with imports of certain Chinese wood products became public.
Investors who purchased shares of Lumber Liquidators Holdings Inc (NYSE:LL) and currently hold any of those NYSE:LL shares have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
The plaintiff claims that Lumber Liquidators directors allegedly engaged in insider trading by selling shares in 2013 while knowing Lumber Liquidators faced potential criminal charges under the Lacey Act for importing Chinese wood products made from illegally harvested trees. The plaintiff alleges that in an effort to cut costs and enhance profits Lumber Liquidators bought hand-scraped, solid oak flooring from Chinese companies that allegedly came from Russia's far eastern forests near the Chinese border. The plaintiff says that in September 2013 federal agents from the U.S. Department of Justice and other federal agencies raided Lumber Liquidators' Virginia headquarters looking for evidence of Russian lumber bought through Chinese mills.
In addition, at least 10 consumers, who purchased certain Lumber Liquidators' Chinese-made laminate flooring products, filed separate lawsuits against Lumber Liquidators in connection with reports that certain of its Chinese-made laminate flooring products exceeded acceptable formaldehyde levels.
On March 1, 2015, a report by 60 minutes alleged Lumber Liquidators sold and installed Chinese-made laminate flooring that contains far higher-than-accepted levels of formaldehyde, a chemical known to cause cancer. Among other things, 60 minutes said it conducted an investigation into Lumber Liquidators' Chinese-made flooring products and of the 31 samples, only one was compliant with CARB formaldehyde emissions standards and some were more than 13 times over the California limit. Through April 27, 2015, 103 pending purported class action cases that have been filed against Lumber Liquidators Holdings Inc since March 3, 2015 in various U.S. federal district courts and state courts relating to its laminate flooring manufactured in China.
On April 29, 2015, Lumber Liquidators Holdings Inc reported its first quarter 2015 financial results and issued its company outlook for the second quarter 2015. Among other things, Lumber Liquidators Holdings Inc also announced that the Company and Daniel E. Terrell have agreed that Mr. Terrell's role as the Company's Chief Financial Officer will terminate effective June 1, 2015. Lumber Liquidators Holdings Inc also disclosed that the Department of Justice indicated that it is seeking criminal charges under the Lacey Act for importing Chinese wood products made from illegally harvested trees that allegedly came from Russia's far eastern forests.
On May 21, 2015, Lumber Liquidators Holdings Inc announced that Robert M. Lynch notified the Company of his resignation as the Company's President and Chief Executive Officer.
Shares of Lumber Liquidators Holdings Inc (NYSE:LL) declined from as high as $119.44 per share in November 2013 to as low as $20.07 per share on June 1, 2015.
Those who purchased shares of Lumber Liquidators Holdings Inc (NYSE:LL), have certain options and should contact the Shareholders Foundation.
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