On March 12, 2019, Lumber Liquidators Holdings Inc. entered into a deferred prosecution agreement with DOJ and agreed to pay $33 million for filing materially false and misleading statements to investors based on its compliance with formaldehyde regulations. According to the DPA, in 2014, U.S. flooring suppliers notified the company that its Chinese laminate products were emitting high levels of formaldehyde. Despite visiting the Chinese laminate supplier and learning that the supplier could not demonstrate that its laminate flooring was compliant with regulations, Lumber Liquidators continued to order laminate flooring from the Chinese supplier.
United States v. Lumber Liquidators Holdings Inc., 19-cr-52 (E.D. Va.)
DOJ Press Release