Lumber Liquidators Holdings Inc (NYSE:LL) founder and chairman have not only moved to reiterating that the company’s products are safe he also emphatically revealed the company’s intention to continue selling Chinese products. In a staunch defense of the embattled company’s products Tom Sullivan, stated that the company will not be derailed. He revealed that it was the company’s intention to continue selling safe and good product, as long as it is in demand. These revelations come on the heels of damaging allegations that the company’s products contain unsafe levels of cancer-causing chemicals. These allegations prompted LL to not only defend its products but also moved to assure investors by calling a press conference last Thursday.
As detailed in a CBS story aired on the program “60 Minutes”, where it was said that real world tests were conducted on the company’s laminates. These tests revealed a higher than stipulated levels of carcinogenic formaldehyde according to California laws. LL has cast blame on a small set of short-term investors that they deem are working together to lower the company’s stock price to make money.
The allegations have not only generated negative publicity, but not subjects the company to facing a US Government probe. In response, Lumber Liquidators Holdings Inc (NYSE:LL) has not only stand by the safety of its products, but it has also sought to offer indoor air quality testing free of cost for customers who are qualified. The controversy has turned the company’s stocks into a full fledge warzone. The company’s stock fell by more than half in the aftermath of this crippling development. Just before news broke on March 1, the company’s stocks traded at $68, the stocks ended at $32 at the close of last week’s trading. However, the company’s stocks soared after renowned activist, Robert Chapman, sided with LL. He noted that after his careful analysis of the aired program he was buying more shares in the company last Thursday.
With LL remaining adamant and contemplating legal action, the story remains intriguing, and its development will be interesting many.