The Lumber Liquidators lawsuit is one of the largest consumer class actions filed in the United States. The company was accused of selling laminated wood floors with dangerous levels of formaldehyde, a toxin that can cause respiratory problems and exacerbate asthma. In addition, the firm sold toxic flooring that did not meet required CARB standards. To get around this problem, the firm used a deceptive marketing strategy, attempting to discredit the methods used by laboratories and hide unsafe products. The company also offered consumers a free air testing kit, which did not comply with industry standards and was useless.
The California Attorney General’s Office filed a motion for summary judgment in the Formaldehyde MDL, which Lumber Liquidators has won.
The lawsuit alleges that the company misrepresented the emissions of formaldehyde in their Chinese laminated flooring. Lumber Liquidators’ products contained levels of formaldehyde six times higher than California’s limit. In addition, the company’s Chinese laminate flooring was labeled as “extremely durable,” which was not the case.
In response to the 60 Minutes program, Lumber Liquidators has filed a motion to dismiss the Complaint. The court has partially granted the motion. The Lumber Liquidators’ motion for summary judgment was granted on July 7, 2018. The company has dismissed all Plaintiffs’ claims regarding breaches of the Illinois Consumer Fraud and Deceptive Business Practices Act and the California False Advertising Law. In addition, Lumberliquidators has removed the senior executive team and installed new executives that are more experienced and knowledgeable about its products.
Lumber Liquidators filed a motion to dismiss the Formaldehyde MDL on July 7.
This motion was partially granted on August 13, 2018. The Lumberliquidators motion for summary judgment rejected all Plaintiffs’ claims under the California False Advertising Law and the Illinois Consumer Fraud and Deceptive Business Practices Act. The settlement amount was not disclosed in the filing. This settlement is not a resolution of the lawsuit, but the court ordered the settlement.
Lumber Liquidators settled with the Justice Department in the Formaldehyde MDL. The company has agreed to cooperate with the investigation. The settlement amount is approximately one-third of the company’s net profits in the sale of Chinese laminate. However, it has replaced the senior executive team with experienced executives who will continue to handle the lawsuit. Despite the ongoing legal battles, the companies are still obligated to pay back customers.
The lawsuit against Lumber Liquidators arose in part from claims of selling formaldehyde-off-gassing flooring and falsely marketing the “Dream Home” Chinese laminate flooring as a durable product. These lawsuits have been filed by hundreds of customers in many states across the country. The company has been sued numerous times for selling Chinese flooring that does not meet industry standards. These products aren’t safe to purchase, but the company has agreed to pay the money to those customers who were affected by the problem.
In response to these claims, Lumber Liquidators initiated a clearance sale of the affected products.
The company also responded to the allegations on 60 Minutes by denying the company’s liability in the form of a breach of implied warranty. Its CEO questioned the methodology that the company used in determining the quality of its products. In addition to settling the case, Lumbers restructured its management team to replace its senior executives.
The lawsuit was filed by the Lumber Liquidators in July 2017.
Among the claims in the lawsuit were that the company sold Chinese laminate flooring that produced harmful levels of formaldehyde. In addition, it marketed the “Dream Home” flooring as extremely durable, despite its high price. The plaintiffs’ lawyers were able to successfully litigate the claims. The company has a total of 62 settlement agreements.
Lumber Liquidators has settled the case with the Justice Department. The company has also agreed to cooperate with the investigation. The settlement agreement amounts to $36 million. The case will settle the claims filed by the plaintiffs and will be resolved by the company. This will help the plaintiffs in their respective legal battles. Ultimately, the Lumber Liquidators have a long way to go before they can avoid the lawsuit and recover damages.