Shares of Lumber Liquidators fell 16% on Monday and another 3% on Tuesday, even though it posted sales growth for the first time in six quarters, reports Lucinda Shen for Fortune.

The company continues to struggle with legal fees stemming from allegations that some of its Chinese-made laminate flooring included formaldehyde, a potentially toxic chemical that has been linked to cancer.

The company reported net losses of $18.4 million, or 68 cents per share, which was up 54% from the same quarter a year earlier. Analysts anticipated a 19 cents per shares loss at the time.

The increase in losses was partially due to the company’s $4.3 million charge in relation to a securities class action lawsuit. That lawsuit alleged that Lumber Liquidators misled investors and made false statements about the company’s laminate flooring.

All the while, sales increased 3.4% to $244.1 million from a year ago, and beat analysts’ estimates of $231.6 million.

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