Lumber Liquidators will pay $33 million to settle fraud charges by federal authorities who accused the company of falsely saying its Chinese-made laminate flooring met formaldehyde emissions standards.
The company, based in Toano, Virginia, is one of the biggest retailers of flooring products in the U.S. Its settlements of criminal and civil fraud charges, related to statements it made in 2015, were announced Tuesday by the Justice Department and the Securities and Exchange Commission.
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Under an agreement, the Justice Department will defer prosecution of Lumber Liquidators and dismiss the charges after three years on condition the company takes remedial actions.
CEO Dennis Knowles said in a prepared statement the company has made sweeping changes "and will continue to take steps with the new executive team to better Lumber Liquidators."