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Lumber Liquidators Surges on CPSC Settlement Without Recall

  • CPSC says testing showed no unsafe levels of formaldehyde
  • Regulator began probe in 2015 after ‘60 Minutes’ allegations
Updated on

Lumber Liquidators Holdings Inc. shares surged as much as 25 percent after the U.S. Consumer Product Safety Commission ended a probe of formaldehyde in the company’s flooring without issuing a product recall.

The agency called for corrective measures that Lumber Liquidators has largely undertaken already, according to a statement on Thursday. The company agreed to not sell laminate flooring made in China -- which it stopped offering more than a year ago -- and will continue offering free tests for any of the 600,000 customers who purchased the product.