Disclosure Insight: Lumber Liquidators Holdings, Inc. – LL $7.32 US Mkt Cap: $608.7 mm: Disclosed SEC Investigation(s) Again Confirmed as On-going.
Update on Lumber Liquidators’ Protracted Investigations
There is an important milestone coming up soon which is worth paying attention to if you have, or are considering, an investment in Lumber Liquidators.
According to an SEC enforcement action brought against Lumber Liquidators in Mar-2019, in early 2015 the company was found to have made false public statements in response to a “60 Minutes” report. That report included undercover video of the company’s suppliers saying that they provided Lumber Liquidators with products that did not meet regulatory standards. As part of this enforcement action, the company agreed to pay $33 million in penalties for misleading investors about formaldehyde in its laminate flooring products. There is an array of other penalties as well. The related disclosures have, for the most part, of little analytical value. We also discuss and analyze an SEC comment letter sent to the company in Dec-2020.
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