Whitney Tilson: The much bigger story, he said is that Lumber Liquidators was almost certainly purchasing formaldehyde-tainted laminated flooring in China. Lumber Liquidators has been crashing because of a report by CBS’s “60 Minutes” that alleges the Toano, Virginia-based company has been selling … "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," the company said. Laminate flooring from Lowe’s and Home Depot had formaldehyde levels below the state’s regulatory limits, the “60 Minutes” report said. I have to be honest with you. Lumber Liquidators founder and Chairman Tom Sullivan said in an interview with "60 Minutes" that the company is not required by law to test its finished products like "60 Minutes" did. Lumber Liquidators Holdings Inc. shares plunged after a “60 Minutes” report accused the company of selling Chinese-made flooring with illegal levels of formaldehyde. We get the price by low overhead, huge volume and being very efficient at what we do. Anderson Cooper presented the 60 Minutes exposé. The 60 Minutes story on Lumber Liquidators that led to a $36 million settlement. We can make CARB 2 but it would be very expensive.]. Last month Lumber Liquidators announced that it invested in a wood products quality testing lab that is housed within its new distribution center outside Richmond, Virginia. The "60 Minutes" report, which aired on CBS on Sunday, said that Lumber Liquidators' laminate flooring made in China contains high levels of formaldehyde, a carcinogen. In a statement put out by the company, Lumber Liquidators said that it complies with applicable regulations for its products, including California standards for formaldehyde emissions for composite wood products. Lynch said that Lumber Liquidators would "vigorously challenge any false allegations or factual incorrect presentations. Formaldehyde is believed to be a cancer-causing chemical. How much is inhaled by homeowners depends on how much formaldehyde is in the glue and how much ventilation is in the home. Anderson Cooper: That sounds like a huge amount. The report said that only one of the 31 samples of Chinese-made laminate flooring was compliant with California formaldehyde emissions standards. U.S. agents raided Lumber Liquidators' headquarters in September 2013. They have flooring that they think is making them sick. But this has got to be the worst. Anderson Cooper: Do you have any idea how much of this wood is in people's homes right now? Lumber Liquidators stock rebounded Thursday after CEO Rob Lynch defended the company and its products to investors -- but he also made a surprising admission.. The following is a script from "Lumber Liquidators" which aired on March 1, 2015, and was rebroadcast on August 16, 2015. Lumber Liquidators is the largest and fastest-growing retailer of hardwood flooring in North America, he … It's what CARB believes. Anderson Cooper: How much is that gonna cost? A press release the company put out stated that the lab has two temperature- and humidity-controlled conditioning rooms, and two formaldehyde emission chambers that mirror the capabilities of the California Air Resources Board and other emission testing facilities. This footage was recorded by investigators hired by 60 Minutes. One of the first people to raise questions about Lumber Liquidators back in 2013 was Whitney Tilson, a Wall Street hedge fund manager. The "60 Minutes" report, which aired on CBS on Sunday, said that Lumber Liquidators' laminate flooring made in China contains high levels of formaldehyde, a carcinogen. But listen to what the general manager told us. Lumber Liquidators 60 Minutes Story: The Price Versus Quality Equation in Flooring The Price Versus Quality Equation in Wood Flooring. Anderson Cooper: The lab itself thought... Denny Larson: It hit the upper limit on the radar gun. Also since then, the chief executive officer resigned and the chief financial officer was replaced. Dr. Philip Landrigan of N.Y.'s Mt. With over 400 locations across 47 states, as well as Canada, you're sure to find a location near you. The results? Lumber Liquidators is getting crushed today after 60 Minutes profiled the company using formaldehyde beyond acceptable legal limits in their flooring products. It also finished among Nielsen's annual top-10 list for 23 consecutive seasons - a record never even approached by another program. Offering hard-hitting investigative reports, interviews, feature segments, and profiles of people in the news, the CBS News magazine has been the number-one program a record five times. That law is scheduled to take effect nationwide this year. Powered and implemented by FactSet. [Investigator: All this stuff here, Lumber Liquidators... All their labeling is CARB 2 right? By. Tom Sullivan: But it started with short sellers. The report by CNN's Anderson Cooper revealed Chinese-manufactured laminate flooring sold by … I will guarantee we'll be in that mill tomorrow and test it. The company denies buying illegally logged wood but admits that the Department of Justice is seeking criminal charges against them. FDA authorizes Pfizer's COVID-19 vaccine for emergency use, SCOTUS rejects Texas bid to overturn election results in 4 states, Feds to buy additional 100 million doses of Moderna vaccine, Why some Black Americans are skeptical of a COVID-19 vaccine, Biden, Harris introduce team who will "deliver immediate relief", FKA twigs sues Shia LaBeouf over alleged sexual assault, Mayor slams U.S. Richard Drury: We believe there are probably tens of thousands of households in California that have installed Lumber Liquidators Chinese laminates that may exceed formaldehyde standards. The story suggests that a substantial portion of the laminated wood flooring made in China emits formaldehyde at a level that exceeds the California Environmental Protection Agency Standards. Copyright © 2020 CBS Interactive Inc.All rights reserved. Complete the job with the … Player Feedback. Whitney Tilson studies the workings of companies he's interested in investing in and he noticed the profit margins at Lumber Liquidators seemed unusually high compared to its competitors. 60 Minutes found that Lumber Liquidators' Chinese-made laminate flooring contains amounts of toxic formaldehyde that may not meet health and safety standards. While flooring is legally allowed to contain formaldehyde, the "60 Minutes" report said that California has strict standards for how much of the chemical the core boards in laminate flooring can emit. Matthew Stern Lumber Liquidators plans to offer customers free air quality tests after a "60 Minutes" report alleged the retailer’s hardwood flooring contains cancer-causing formaldehyde. This past week, a spokesman for the company said, "Lumber Liquidators has taken and continues to take significant steps to investigate these issues and reassure our customers". Dr. Philip Landrigan: It's not a safe level, it's a level that the US EPA calls polluted indoor conditions. Mar 2, 2015 In light of Sunday night’s 60 Minutes episode featuring Lumber Liquidators Holdings, Inc. (“the Company”), the Company is providing the following statement: “Lumber Liquidators is a leader in safety, as evidenced by our track record of providing our wide range of products to two million satisfied customers across America. © 2015 CBS Interactive Inc. All Rights Reserved. Anderson Cooper: Would you want that in your home? This footage was recorded by investigators hired by 60 Minutes. It turns out of the 31 samples of Chinese-made laminate flooring, only one was compliant with formaldehyde emissions standards. Drury and Larson bought more than 150 boxes of laminate flooring at stores around California and sent them to three certified labs for a series of tests. Denny Larson: You know what? Fallout for Lumber Liquidators after "60 Minu... California Privacy/Information We Collect. Its cheaper and-- it reduces the cost by about 10 percent. And as we discovered when we first reported this story in March, it may fail to meet health and safety standards, because it contains high levels of formaldehyde, a known cancer-causing chemical. Lumber Liquidators Defends Its Products After '60 Minutes' Report The flooring retailer says the tests used by its critics give a misleading impression of product safety. Denny Larson: Every single board. Based on those profits, Lumber Liquidators' stock price had gone from $13 a share in 2011 to $119 in 2013. It's not going to produce symptoms in everyone but children will be the people most likely to show symptoms at that sort of level. Tom Sullivan: That would be if that's true. It’s official – Lumber Liquidators has been sued. Manager: Yes, you can. Lumber Liquidators plans to offer customers free air quality tests after a "60 Minutes" report alleged the retailer’s hardwood flooring contains cancer-causing formaldehyde. Great Lakes Asset Liquidation LLC. And they believe in this test. The California Air Resources Board has updated information for consumers. Both labs told us they had never seen formaldehyde levels that high. Because they're guilty of selling people product that could make them sick. The most recent 60 minutes episode that aired March 1 st, 2015, for which the link is posted below, brings to light the depth of deception and fraud that is being committed by Lumber Liquidators on a daily basis. Lumber liquidators one of the largest flooring companies in america knew that its largest chinese supplier had failed third party formaldehyde emissions testing the sec said the sec s order. The laminated top, which covers the core board, keeps most of the formaldehyde emissions trapped inside. Tilson suspected the company might be breaking the law. Offering hard-hitting investigative reports, interviews, feature segments, and profiles of people in the news, the CBS News magazine has been the number-one program a record five times. Help . The laminated top, which covers the core board, keeps most of the formaldehyde emissions trapped inside. It's almost unprecedented for a company. CBS's "60 Minutes" And on their website, Lumber Liquidators promises that all of their flooring "meets or exceeds rigorous emissions standards" and they say "we not only comply with laws, we exceed them.". Lumber Liquidators is the premiere hardwood flooring retailer in North America, serving both the professional installer and do-it-yourself customers. Anderson Cooper reports on Sunday, August 16 at 7 p.m. ET/PT. Formaldehyde is in the glues used to bind wood particles together to make the core boards in laminate flooring. The company may not … In its statement, Lumber Liquidators said "60 Minutes" used an improper testing method. Formaldehyde is in the glues used to bind wood particles together to make the core boards in laminate flooring. NEW YORK - Shares of Lumber Liquidators (LL) are sliding Monday following a report on "60 Minutes" that the company's laminate flooring made in China may not meet California's health and safety standards. Sheeraz Raza - Mar 26, 2015, 4:36 pm . Lumber Liquidators' Chinese-made laminate -- according to the testing paid for by 60 Minutes -- produced dangerously high emissions levels, while its … Anderson Cooper is the correspondent. It was so high, in fact, that one of our test labs thought their machine was broken. Anderson Cooper: Nobody's ever reported this to you? Lumber Liquidators is located at the address 13080 Inkster Rd in Redford, Michigan 48239. Lumber Liquidators’ Response to 60 Minutes Episode. Some were more than 13x over the California limit. Lumber Liquidators has insisted ever since our report that its Chinese-made laminate flooring is safe, but it doesn't appear that way based on what we learned from our own reporting and from the work of people like Denny Larson. Anderson Cooper: Which in a business with these kinds of profit margins - 10 percent means - it's a lot of money? And we found some that were close to 20 times above the level that's allowed to be sold. It is illegal to sell these boxes of wood in California. Could people still be infectious after they're vaccinated for COVID-19? Lumber Liquidators Chairman Tom Sullivan, says the "60 Minutes" report distorted the facts, and did a great job scaring people making up this story." But we wondered if the Chinese-made laminate flooring that Lumber Liquidators is selling nationwide also has high levels of formaldehyde. In a 60 Minutes segment that aired on Sunday, CBS reported that company-installed flooring in at least five states had high levels of formaldehyde. (Reuters) - Lumber Liquidators Holdings Inc, a retailer of hardwood flooring in North America, sold flooring with higher levels of formaldehyde than permitted under California's health and safety standards, according to television news program "60 Minutes". Denny Larson: You're in a chamber so you're living with it. And that is not anything we can condone in any way, to save a cent. Anderson Cooper presented the 60 Minutes exposé. From 2015, the culmination of a seven-month investigation that found Lumber Liquidators was making false claims about its flooring. Columbia Forest Products manufacturers formaldehyde-free PureBond hardwood plywood decorative panels. Lumber Liquidators' Chinese-made laminate -- according to the testing paid for by 60 Minutes -- produced dangerously high emissions levels, while its … CARB 2 means it's compliant with California law. News program has alleged retailer's hardwood flooring fails safety tests After … CBS' 60 Minutes did a story saying the company's products have … Copyright © 2020 CBS Interactive Inc. All rights reserved. I don't care. You're sleeping in there. Anderson Cooper, anchor of CNN's "Anderson Cooper 360," has contributed to 60 Minutes since 2006. 60 Minutes, the most successful broadcast in television history. So we sent our investigators undercover to the city of Changzhou, the laminate flooring capital of the world. Lumber Liquidators is the largest retailer of hardwood flooring in North America, with over 360 stores in 46 states and revenue of more than a billion dollars a year. Employees at the mills openly admitted that they use core boards with higher levels of formaldehyde to make Lumber Liquidators laminates, saving the company 10-15 percent on the price. 60 Minutes found that Lumber Liquidators' Chinese-made laminate flooring contains amounts of toxic formaldehyde that may not meet health and safety standards. We sent the samples for testing at two certified labs. They can be contacted via phone at (313) 532-1200 for pricing, hours and directions. As reported Monday morning in Remodeling, Lumber Liquidators—the largest flooring retailer in North America—came under fire by CBS's 60-Minutes for selling Chinese-made laminate hardwood with unacceptably high levels of formaldehyde.. Chinese-made laminate flooring purchased in six states was tested and found to be out of compliance with standards set by the California Air … He learned there was already a federal investigation looking into the company for allegedly buying timber illegally logged in Russia. In the "60 Minutes" report, correspondent Anderson Cooper spoke with Denny Larson, executive director of nonprofit group Global Community Monitor, and environmental attorney Richard Drury. Lumber Liquidators (LL) May Sue “60 Minutes” For Libel. Lumber Liquidators is the largest and fastest-growing retailer of hardwood flooring in North America, he … Formaldehyde is in the glues used to bind wood particles together to make the core boards in laminate flooring. Lumber Liquidators said in the filing that it will continue to communicate with the Justice Department "regarding its intentions and possible courses of action in this matter.". 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