SAN DIEGO, March 16, 2015 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit was filed by a current long-term investor in (NYSE:LL) shares against nine officers of Lumber Liquidators Holdings Inc. The plaintiff alleges that Lumber Liquidators' founder and its CEO together sold $19 million worth of stock at inflated prices before the company's problems with imports of certain Chinese wood products became public.
Investors who purchased shares of Lumber Liquidators Holdings Inc (NYSE:LL) in 2013 or earlier and continue to hold any of those (NYSE:LL) shares, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779-1554.
The plaintiff claims that Lumber Liquidators directors allegedly engaged in insider trading by selling shares in 2013 while knowing Lumber Liquidators faced potential criminal charges under the Lacey Act for importing Chinese wood products made from illegally harvested trees. The plaintiff alleges that in an effort to cut costs and enhance profits Lumber Liquidators bought hand-scraped, solid oak flooring from Chinese companies that allegedly came from Russia's far eastern forests near the Chinese border. The plaintiff says that in September 2013 federal agents from the U.S. Department of Justice and other federal agencies raided Lumber Liquidators' Virginia headquarters looking for evidence of Russian lumber bought through Chinese mills.
In addition, at least 10 consumers, who purchased certain Lumber Liquidators' Chinese-made laminate flooring products, filed separate lawsuits against Lumber Liquidators in connection with reports that certain of its Chinese-made laminate flooring products exceeded acceptable formaldehyde levels.
On March 1, 2015, a report by 60 Minutes alleged Lumber Liquidators sold and installed Chinese-made laminate flooring that contains far higher-than-accepted levels of formaldehyde, a chemical known to cause cancer. Among other things, 60 Minutes said it conducted an investigation into Lumber Liquidators' Chinese-made flooring products and of the 31 samples, only one was compliant with CARB formaldehyde emissions standards and some were more than 13 times over the California limit.
Those who currently hold long-term Lumber Liquidators Holdings Inc (NYSE:LL) shares should contact the Shareholders Foundation, Inc at mail@shareholdersfoundation.com or call +1 (858) 779-1554.
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.