Recently, formaldehyde and Lumber Liquidators have made headlines, after an airing of CBS’ 60 Minutes. This post will look at both sides of the case. If you are interested in reading more about formaldehyde, a post can be found here.
The claim from the 60 Minutes investigations was damning. Lumber Liquidators, a major flooring retailer, was using products that contained an unsafe level of formaldehyde; which is a carcinogen. Unsurprisingly, Lumber Liquidator’s stock went into a free fall. If the testing wasn’t enough, 60 Minutes pushed the envelope even further. On the 60 Minutes special, they aired hidden camera footage from Chinese flooring factories in which workers admitted to falsifying formaldehyde levels in Lumber Liquidators’ products.
As one would expect, Lumber Liquidators came firing back. Their CEO, Rob Lynch insists that the whole thing is being overblown by short sellers on Wall Street. Lynch also took issues with the testing done to the products; stating that what is done in testing does not at all simulate the day to day exposure a person would get to the formaldehyde.
To demonstrate their confidence, and hopefully repair their image, Lumber Liquidators is willing to pay for their own safety testing for those who want it.
There are two more things to consider. First, Lumber Liquidators has been involved in an ongoing class action lawsuit for this issue prior to the 60 Minutes investigator. Secondly, California safety officials have stated that proper ventilation is probably enough
What do you think about this issue?