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Lumber Liquidators shares sink on cancer fears

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Shares of US flooring retailer Lumber Liquidators have fallen almost 20% after authorities said its laminate flooring was linked to a heightened risk of cancer.

The risk was three times higher than the US Centers for Disease Control and Prevention (CDC) previously estimated.

Last year a news report uncovered a high level of cancer-causing chemicals in the company's flooring.

Lumber Liquidators stopped selling Chinese-made laminate flooring in May.

An earlier CDC report estimates the risk of cancer was between two and nine people in 100,000. The updated report estimates that risk to be between six and 30 people in 100,000.

Lumber Liquidators said it had worked to improve "quality assurance procedures" including testing of new products.

The floorboards in question contain high levels of the carcinogen formaldehyde. The CDC said it had used an incorrect ceiling height that lead it to underestimate the impact of airborne concentration of the formaldehyde.

Shares fell $2.82 to $11.39 in New York.

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