Lumber Liquidators’ stock rose 14% in midday trade Tuesday, following an announced agreement with the California Air Resources Board that "fully" resolves previous inquiries into its laminate flooring products sourced from China, according to MarketWatch reporter Tomi Kilgore.
The wood flooring maker will pay CARB $2.5 million, and will implement voluntary compliance procedures to ensure all of its flooring products comply with CARB's formaldehyde standards as part of the agreement.
The company said CARB's review was completed with no formal finding of violation of admission of wrongdoing. "We believe today's settlement will go a long way in helping us to execute our strategy, which includes rebuilding our brand and communicating--with clarity and candor--the value of our products to our customers and stakeholders," said Chief Executive John Presley.
The stock has plunged 51% over the last year, amid concerns that its China-sourced wood flooring products carried high levels of a cancer causing agent.