MarketWatch staffer Tomi Kilgore covers the stock run-up for Lumber Liquidators in the wake of its "plea" settlement with the the Environmental Investigation Agency, after it pleaded guilty to violating the Lacey Act, which includes importing illegal wood and submitting false declarations.
Kilgore breaks out the $13.15 in agreed-to penalties, $7.8 million in criminal fines, $1.23 million in community service payments, nearly $1 million in forfeited proceeds, and $3.15 million related to a civil forfeiture. Kilgore writes:
"The real cost to the company will come from having to forego cheap, stolen wood in its supply chain while the Department of Justice looks over its shoulder," said EIA Executive Director Alexander von Bismarck. The sentencing is not related to a "60 Minutes" report in early 2015, that alleged the company sold wood flooring from China with high-levels of a cancer-causing agent.