Lumber Liquidators Facing CPSC Investigation

Federal safety investigators are looking to see whether some of its flooring contains dangerous levels of cancer-causing chemicals.

The Consumer Product Safety Commission has launched a probe into whether some Lumber Liquidators' flooring has dangerous levels of the cancer-causing chemical formaldehyde, according to a CNN report.

The investigation started after a "60 Minutes" story featured tests of Chinese-made laminate sold by Lumber Liquidators exceeding standards for safe levels of formaldehyde set by California, the only state that has such standards. Homes nationwide have the Chinese-made flooring installed, while the American-made flooring sold by the company was found to be safe. Lumber Liquidators has said the product is safe and will continue to sell the Chinese-made product.

"We have been in direct communication with CPSC staff over the past several weeks and expect them to review our products using sound science and test methods that evaluate finished flooring as used in consumers' homes," said the company.

"Recently some questions have been raised about our laminate products. Let me make one thing very clear – our laminate products, all of our products, are 100% safe," says a letter from Tom Sullivan, founder and chairman of Lumber Liquidators, Inc., that is posted on the company's website. "These attacks are driven by a small group of short-selling investors who are working together for the sole purpose of making money by lowering our stock price. They are using any means to try and scare our customers with inaccurate allegations. Their motives and methods are wrong and we will fight these false attacks on all fronts."

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