Toano-based Lumber Liquidators to pay $33M penalty for securities fraud

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CICERO, IL – APRIL 29: A sign marks the location of a Lumber Liquidators store on April 29, 2015 in Cicero, Illinois. The U.S. Department of Justice is reported to be seeking criminal charges against Lumber Liquidators following an investigation over imported products. The television news program ”60 Minutes” recently reported that the company’s Chinese-made […]

RICHMOND, Va. (WAVY) — Toano-based flooring giant Lumber Liquidators has agreed to pay a $33 million penalty to the federal government for securities fraud.

The U.S. Attorney’s Office said the company misled investors about its laminate flooring in a knowingly false statement denying allegations featured in a March 2015 episode of “60 Minutes.”

The company claimed the product was environmentally safe — when in fact, it came from China and did not meet certain standards.

PREVIOUS: Lumber Liquidators to pay for safety testing of flooring

Employees who were involved in the wrong-doing were fired or resigned.

Lumber Liquidators, which is based in Toano, is expected to move its to headquarters to a new facility in Henrico County later this year.

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