Lumber Liquidators Inc. said Tuesday that it’s reached a $36 million deal with two classes of consumers in Virginia federal court multidistrict litigation over its allegedly defective and hazardous laminate flooring.
One class had alleged that the durability of the wood was not up to snuff, despite marketing statements to the contrary, while another class claimed that the wood contained levels of formaldehyde beyond the standard allowed.
Under the agreement, Lumber Liquidators will pay out $22 million in cash and another $14 million in store credit, according to a press release from the company.
Anyone who bought Chinese-manufactured laminate flooring sold by the company between January 2009 and May 2015 will be eligible for cash or vouchers, the company said.
Steven J. Toll, counsel for the formaldehyde class, told Law360 he is also pleased with the result.
“We think it brings a high value for consumers because they'll be able to select cash or vouchers,” he said.
The multidistrict litigation over the company’s Chinese-manufactured flooring was consolidated in June 2015.
Lumber Liquidators has been under siege since CBS' "60 Minutes" in March 2015 reported that the company’s Chinese-manufactured laminate flooring contained levels of formaldehyde beyond the standard allowed by the California Air Resources Board.
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