Lumber Liquidators Holdings Inc. moved closer Tuesday to resolve class-action lawsuits concerning the safety of Chinese-made flooring that has tangled the company in litigation for over two years.
The specialty flooring retailer entered a memorandum of understanding with a group of law firms led by Cohen Milstein Sellers & Toll PLLC to settle allegations that it sold laminate flooring manufactured in China that contained levels of formaldehyde that exceeded state emissions standards.
Under the terms of the proposed agreement the company will pay out $22 million in case and offer $14 million in store credit to customers who bought the relevant flooring.
“We think it’s a real value to the consumers,” said Steven Toll managing partner of Cohen Milstein Sellers & Toll. He highlighted that giving customers the option to receive a voucher to replace their floors may be a better value than a cash settlement in some cases.
A judge is likely to approve the settlement by early March with claims to be paid out starting in the summer, Mr. Toll said.
Lumber Liquidators found itself under public scrutiny after a “60 Minutes” segment on CBS accused the floor maker of selling Chinese-made laminate flooring that contained levels of formaldehyde that exceeded California emissions standards.
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