Trading was halted Monday in Lumber Liquidators after its shares dropped more than 20 percent following a CBS report that the company sold flooring with higher levels of formaldehyde than permitted under California's health and safety standards (CARB).
The trading was halted for pending news, and then reopened at around 11:15 a.m. ET. The stock had fallen 24.8 percent before the market opened Monday. It was lately down 19.53 percent.
In a statement released before midday ET Monday, Lumber Liquidators said: "We stand by every single plank of wood and laminate we sell all around the country and will continue to deliver the best product at the best price to our growing base of valued customers.”
The "60 Minutes" show on Sunday said it sent Lumber Liquidators' flooring in Virginia, Florida, Texas, Illinois and New York to certified labs to test for levels of formaldehyde, a cancer-causing chemical." Out of the 31 samples of Chinese-made laminate flooring, only one was compliant with formaldehyde emissions standards. Some were more than 13 times over the California limit," according to CBS.
Lumber Liquidators statement Monday reiterated that it complies with applicable regulations regarding its products, including California standards for formaldehyde emissions. "Although the CARB regulations only apply in California, we adhere to these standards everywhere we do business," the company said. It added that it believes '60 Minutes' used an improper testing method that is not included in CARB's regulations.
"As 60 Minutes noted, these attacks are driven by a small group of short-selling investors who are working together for the purpose of making money by lowering our stock price. Their motives and methods are wrong and we will fight these false attacks on all fronts," the company said.
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-- Reuters, CNBC and NBC News staff
