Lumber Liquidators (LL) Slammed Again as Senator Calls for Federal Investigation

Already down 41% since disclosing on its conference call last week that it will be the subject to a negative '60 Minutes' feature, shares of Lumber Liquidators (NYSE: LL) are plunging another 10% intra-day Wednesday as the investigative report has drawn the interest of a heavyweight in Congress.

In press release statement mid-day, Florida Sen. Bill Nelson said the report, which found that laminate made in China and sold by retail giant Lumber Liquidators contained significant amounts of a formaldehyde, is concerning. He is now asking the federal government to investigate whether the imported laminate poses a health risk to the public.

In a letter sent today to the heads of the Consumer Product Safety Commission (CPSC), the Centers for Disease Control and Prevention (CDC) and the Federal Trade Commission (FTC), Nelson, the panel’s ranking member on the Senate Committee on Commerce, Science and Transportation, called for independent testing of the laminate flooring. He also wants to know whether the company made potentially false marketing claims about the product’s compliance with a California formaldehyde safety standard.

In a potentially damning comment, Nelson said, "If testing confirms high concentrations of formaldehyde, the solution may include having tainted flooring removed from people's homes."

Notably, Nelson was at the forefront of leading the effort to help consumers who had tainted Chinese drywall in their homes.

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