Lumber Liquidators Mired in Shareholder Lawsuits
Lumber Liquidators Holdings Inc., whose stock has plummeted since a “60 Minutes” exposé revealed that its hardwood laminate flooring products contained illegal levels of formaldehyde, is fending off a raft of shareholder lawsuits filed against its top executives, many of whom have abruptly left the company.
July 15, 2015 at 03:00 PM
6 minute read
Lumber Liquidators Holdings Inc., whose stock has plummeted since a “60 Minutes” exposé revealed that its hardwood laminate flooring products contained illegal levels of formaldehyde, is fending off a raft of shareholder lawsuits filed against its top executives, many of whom have abruptly left the company.
The shareholder lawsuits are separate from the more than 100 consumer class actions coordinated before U.S. District Judge Anthony Trenga in the Eastern District of Virginia.
Shareholders filed a consolidated derivative complaint on behalf of Toano, Virginia-based Lumber Liquidators on June 26 against the company's board and five officers, including three who have left since the “60 Minutes” report on March 1. In April, the company announced chief financial officer Daniel Terrell's resignation. Chief executive officer Robert Lynch abruptly left in May. William Schlegel, who was the head of merchandising, was fired last month.
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