Lumber Liquidators addresses concerns about safety of products in bid to stem stock plunge

Industrials Associated Press

Shares of Lumber Liquidators slumped 5 percent in volatile premarket trading Thursday before the company, which has been battered by reports of unsafe products, provides investors with an update about its business.

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Shares rose almost 11 percent on Wednesday.

A "60 Minutes" report earlier this month said that the company's laminate flooring made in China contained high levels of formaldehyde, a carcinogen. Lumber Liquidators has said that it complies with all regulations for its products. The "60 Minutes" report said the company's laminate flooring fell short of California's standards, something that the company has denied.

Last week, U.S. Sen. Bill Nelson of Florida sent a letter to the heads of the Consumer Product Safety Commission, the Centers for Disease Control and Prevention and the Federal Trade Commission in which he called for independent testing of the laminate flooring to see if it potentially poses a health risk to the public.

On the same day, company executives backed out of a planned appearance at an investor conference in Florida.

Lumber Liquidators this week said that that it will talk about the safety of its products Thursday and discuss what has created confusion about them. The Toano, Virginia, retailer also plans to address investor concerns about its liquidity. Shares have plunged almost 50 percent in just one month and are down almost 70 percent over the past 12 months.

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The conference call begins at 10 a.m. Eastern.

Shares of Lumber Liquidators Holdings Inc. fell $1.70 to $31.03 before the opening bell.