Lumber Liquidators Holdings Inc (LL) said it would settle all pending litigations related to the China-made flooring products sold by the hardwood flooring retailer for an aggregate settlement amount of $36 million.
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The company said on Tuesday it signed agreement with complainants in two cases in the Eastern District of Virginia to contribute $22 million in cash and $14 million in store credit vouchers.
The $36 million will be used to settle all claims brought on behalf of the buyer of the China-sourced products sold by the company between Jan. 1, 2009 and May 31, 2015, the company said.
Lumber Liquidators ran into losses after CBS’s “60 Minutes” television news program alleged in March 2015 that the company’s flooring products contained high levels of formaldehyde, a cancer-causing chemical, leading to class-action lawsuits.
Faced with lawsuits from investors and investigations by federal agencies, Lumber Liquidators has shuffled senior management and worked to improve product quality.
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The company’s said the settlement agreement does not constitute an admission by the company of any fault or liability.
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Lumber Liquidators shares were up nearly 3 percent in extended trading on Tuesday.
