US regulators announced that some of Lumber Liquidators Holdings Inc. laminate flooring has a great risk of causing cancer. The US Centers for Disease Control and Prevention (CDC) had previously announced that the risk was lower as they made incorrect measurements, according to Bloomberg Business.
The retailer’s sales dropped a lot in the last six months, since CDC made the announcement. The earlier report released by the US regulators measured the ceiling heights wrong, thus lowering the airborne concentration, through which they established the estimated danger.
After Lumber Liquidators was almost recovering after a year of crisis, it dropped 20% to $11.40 at the close in New York, as Bloomberg Business reported. Also, after the March “60 minutes” show that proved the company’s flooring had dangerous levels of formaldehyde, the shares fell almost 70%
The CDC explained that there is a 6 to 30 cases of risk tumors, per 100.000 people. The previous estimation was a 2 to 9 cases. As a result, Lumber Liquidators have tried to improve their quality-assurance procedures, to stop the sale of Chinese laminate and also to offer free air tests.
The whole story started when the company’s laminate flooring proved to contain levels of formaldehyde that exceeded those allowed in California.