Lumber Liquidators Holdings Inc.'s stock soared 14% in midday trade Tuesday, after the wood flooring maker announced an agreement with the California Air Resources Board that "fully" resolves previous inquiries into its laminate flooring products sourced from China. As part of the agreement, Lumber Liquidators will pay CARB $2.5 million, and will implement voluntary compliance procedures to ensure all of its flooring products comply with CARB's formaldehyde standards. The company said CARB's review was completed with no formal finding of violation of admission of wrongdoing. "We believe today's settlement will go a long way in helping us to execute our strategy, which includes rebuilding our brand and communicating--with clarity and candor--the value of our products to our customers and stakeholders," said Chief Executive John Presley. The stock has plunged 51% over the last year, amid concerns that its China-sourced wood flooring products carried high levels of a cancer-causing agent.
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