March 12, 2019 / 4:32 PM / 10 days ago

Lumber Liquidators pays regulators $33 mln in flooring scandal settlement

March 12 (Reuters) - Lumber Liquidators has agreed to pay U.S. regulators a $33 million penalty for making false statements to investors about the safety of its laminate flooring as part of a settlement announced on Tuesday.

The company made false and misleading statements in early 2015 while responding to allegations that it was selling flooring that contained illegally high levels of formaldehyde, the U.S. Securities and Exchange Commission and the Attorney for the Eastern District of Virginia announced separately. Formaldehyde, used in making building materials, is a known carcinogen.

“We have cooperated with this investigation and are pleased to have reached a resolution with the U.S. Attorney’s Office, DOJ, and SEC,” Lumber Liquidators Chief Executive Officer Dennis Knowles said in a statement.

Shares in Lumber Liquidators rose nearly 1 percent after the news. (Reporting by Siddharth Cavale in Bengaluru)

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