Lumber Liquidators settles bamboo flooring lawsuit
Lumber Liquidators, the specialty flooring retailer, is paying up to $30 million in a class-action lawsuit settlement with customers who claimed the company’s Morning Star Strand Bamboo flooring was defective.
In an SEC filing, the Toano, Va.-based company said it will contribute $14 million in cash and provide $14 million in store-credit vouchers, with a potential additional $2 million in store-credit vouchers to plaintiffs in the “Gold Litigation,” named after plaintiff Dana Gold.
Gold, the lead plaintiff, filed the suit in U.S. District Court for the Northern District of California in 2014.
Plaintiffs in the case claimed that flooring showed premature cracking, splitting, warping and shrinking before the warranted life of the boards.
In March, Lumber Liquidators agreed to pay another $33 million in penalties to resolve a charge of securities fraud from March 2015.
In an SEC filing, the Toano, Va.-based company said it will contribute $14 million in cash and provide $14 million in store-credit vouchers, with a potential additional $2 million in store-credit vouchers to plaintiffs in the “Gold Litigation,” named after plaintiff Dana Gold.
Gold, the lead plaintiff, filed the suit in U.S. District Court for the Northern District of California in 2014.
Plaintiffs in the case claimed that flooring showed premature cracking, splitting, warping and shrinking before the warranted life of the boards.
In March, Lumber Liquidators agreed to pay another $33 million in penalties to resolve a charge of securities fraud from March 2015.