Everything You Need to Know About Lumber Liquidators Hardwood Flooring Lawsuit
Lumber Liquidators, a leading hardwood flooring retailer, faced a class action lawsuit alleging that it sold illegally sourced flooring from China. Here are the essential aspects of the case:
Origins and Allegations
In 2013, the environmental group Earthjustice filed a lawsuit on behalf of consumers who purchased flooring from Lumber Liquidators. The lawsuit alleged that the company imported and sold hardwood flooring made from endangered wood species, violating the Lacey Act, a federal law that prohibits the trafficking of illegally sourced timber.
Investigation and Findings
The U.S. Department of Justice launched an investigation into the allegations. In 2015, Lumber Liquidators admitted to selling illegal flooring from China and agreed to a $13.2 million settlement with the government. The settlement included criminal fines, civil penalties, and a requirement for Lumber Liquidators to implement a compliance program to prevent future violations.
Class Action Lawsuit
In addition to the government investigation, a class action lawsuit was filed on behalf of consumers who purchased flooring from Lumber Liquidators. The lawsuit alleged that the company misrepresented the origin of the flooring, breached warranties, and violated consumer protection laws.
Settlement and Resolution
In 2017, Lumber Liquidators settled the class action lawsuit for $36 million. The settlement provided compensation to consumers who purchased flooring from China between 2009 and 2014. The settlement also required Lumber Liquidators to implement new policies and procedures to ensure compliance with the Lacey Act and other applicable laws.
Lessons Learned
The Lumber Liquidators Hardwood Flooring Lawsuit highlights the importance of ethical sourcing and consumer protection. It demonstrates the consequences of violating environmental laws and the need for businesses to prioritize transparency and responsible practices.
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