The Implications of the Lumber Liquidators Formaldehyde Exceedance Scandal

The report also uncovered that some of the company’s suppliers had falsely labeled their products as compliant with California Air Resources Board (CARB) regulations.

Following the broadcast, the LLC company's stock continued to decline, and in Q1 2015, it reported a $7.8 million loss.

The company later agreed to pay a $33 million fine to settle criminal charges related to misleading investors about the safety of its Chinese-made flooring.

Overall, this scandal inflicted significant financial and reputational damage on Lumber Liquidators.