Lumber Liquidators Holdings Inc (LL) stock jumped on Tuesday after winning a legal ruling in California.
The tentative ruling of a California judge found that the company had given proper warning to customers concerning the dangers of formaldehyde in its laminate flooring. A final ruling on the matter could help it overcome criticism following a 60 Minutes report that claimed the flooring increase the risk of cancer.
The claims made against Lumber Liquidators have damaged its business lately. Despite no violation of laws, the company still reduced prices and removed laminate floors with a high concentration of formaldehyde that came from China from its stores, reports Bloomberg.
The 60 Minutes news report that first brought attention to the formaldehyde levels in Lumber Liquidators floors was released a little over a year ago. It’s floors that were made in the U.S. were found to have safe levels of formaldehyde in them.
LL shares were up 12% as of Noon Tuesday.
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