“We are pleased to have reached resolution with the U.S. Attorney’s Office, and the Securities and Exchange Commission, and are committed to our customers, compliance, transparency, and accountability across our organization and from our vendors. Lumber Liquidators has undergone a complete transformation in recent years and today is a new company led by an entirely new management team. We continue focusing on providing quality products, services and experiences for our valued customers and stakeholders.”

UPDATE ON DISCLOSURE MATTERS

The Company entered into a deferred prosecution agreement with the U.S. Attorney’s Office for the Eastern District of Virginia and the Department of Justice (DOJ) to resolve its charge of securities fraud in connection with the Company’s Form 8-K filing in March 2015. The agreement with the DOJ stated the charges are deferred and will be dismissed after three years provided that the Company meets certain obligations, many of which are already implemented.

The Company entered into a settlement of an administrative proceeding with the Securities and Exchange Commission (SEC) regarding violations of Sections 10(b) and 13(a) of the Exchange Act and applicable rules. Notably, neither the DOJ nor the SEC made any findings regarding the safety or quality of the Company’s laminate flooring previously sourced from China.

As a result, Lumber Liquidators has agreed to pay a fine in the amount of $19.1 million, and restitution of $13.9 million, of which up to $6.1 million will be paid to the SEC in disgorgement and prejudgment interest. As part of its relevant considerations, the DOJ noted that Lumber Liquidators’ “employees involved in wrongdoing either were terminated or resigned from the Company, and the Company replaced its executive management team with experienced executives who have displayed a commitment to building an ethical corporate culture.”

In the lead-up to these agreements, Lumber Liquidators has incorporated extensive remedial measures that include the implementation and enforcement of a comprehensive compliance, ethics, and reporting program, as well as training and guidance on relevant policies and procedures.

These resolutions are an acknowledgment of our good faith and relentless efforts to transform our company and demonstrate our commitment to our customers, compliance, transparency and accountability across our organization and from our vendors.

DEMONSTRATING COMMITMENT TO INTEGRITY AND COMPLIANCE

Lumber Liquidators has invested significantly in improvements to our compliance policies and procedures and related remediation efforts, and undergone a complete management transformation since the spring of 2015.

  • The Board moved aggressively to bring in a new and highly experienced leadership team that would emphasize a culture of sound business practices, honesty, integrity and accountability for what we sell and what we say.
  • The new management team has taken steps to broaden and integrate integrity and compliance throughout our operations, including driving improvements to, and oversight of, Lumber Liquidators’ vendor relationships.
  • We retained outside subject matter experts to evaluate and make recommendations concerning our policies, procedures and practices, including compliance issues related to U.S. California Air Resources Board (“CARB”) and the U.S. Environmental Protection Agency (“EPA”).
  • Our Integrity Hotline is consistently monitored and available to employees, vendors, and third-party partners.

ENSURING SAFETY OF OUR PRODUCTS

The U.S. Consumer Product Safety Commission closed its investigation of Lumber Liquidators’ Chinese-sourced laminate products without issuing a product recall. We believe this is validation that the formaldehyde levels met requirements and demonstrates the products were safe.

  • Lumber Liquidators voluntarily removed the product from the market to allay customer concerns, and the company no longer sells this product.
  • The Company has instituted strong quality and compliance programs to provide assurance that, no matter where products are sourced, we are confident that compliance, quality and safety requirements have been met.
  • We have developed a rigorous on-boarding process for vendors. This vetting process includes due diligence, onsite audits, and testing of product.
  • We have an audit program which validates that vendors that meet our requirements. Internal and external experts vet and approve new vendors, audit and gauge their compliance with our requirements and the law, and assist the Company in following up with vendors to ensure each one takes appropriate action to address findings.
  • We invested in an expansive and voluntary home air testing program. These third-party tests showed that no floor samples exceeded World Health Organization (WHO) emissions levels and that test results looked statistically similar to prior studies of normal households.

Still have questions? Contact: LLNewsRoom@lumberliquidators.com

Mission & Values

From inspiration to installation, our passion is to make beautiful flooring possible and easy for all.

  • Trend-forward styles and motivating experiences provide inspiration for our customers.
  • Our installation services deliver the full-service seeker peace of mind.
  • As flooring experts, our associates are passionate about helping customers find the perfect floor for their home with the quality products we sell.
  • We offer the best selection of beautiful flooring. That’s all we do.
  • Our low prices make it possible for anyone to afford the floor of their dreams.
  • Our services, selection, and low prices combine to make the flooring experience easy and fun for our customers.
  • We have a flooring solution for all consumers (DIY/DIFM) and Pro customers.

 

Core Values

  • We Think Like Our Customers
  • We Act Like Owners
  • We Succeed as a Team
  • We Expect Continuous Improvement
  • We Act with Integrity

Commitment to Quality & Safety

Lumber Liquidators is committed to selling high quality safe products produced in ethical environments to our customers. We make sure that our vendor’s factories and how our products are made meet all laws and mandatory safety standards before any product is shipped to us. To support this commitment, we use rigorous tools and processes to assess our products at every stage of production. By doing this, we ensure that through audits and testing, our vendors and our products meet and / or exceed the highest standards. If we learn about a problem with one of our products, we investigate and, when necessary, quickly remove it from our stores, distribution centers, and Lumberliquidators.com.

What We're Doing

Lumber Liquidators is investing more than ever to ensure the products we offer will exceed your expectations and the high standards we set for ourselves. In support of healthier home environments, we have voluntarily required all of our vinyl floors to be made with materials that meet the heavy metals and chemical requirements required to be considered safe enough to be used in children’s toys. Further, all of our wood flooring is made to the most rigorous applicable emission standards.

Our flooring vendors are required to partner with Underwriter’s Laboratories or SCS Global Services to meet stringent GREENGUARD Gold or FloorScore certification standards for indoor air quality. When you shop with us, you can have peace of mind knowing these floors have met some of the world’s most demanding industry standards for low chemical emissions. Additionally, all products that carry the GREENGUARD Gold or FloorScore certification are eligible for various sustainable building credits, including Leadership in Energy and Environmental Design (LEED) and the WELL Building Standard. Learn more about GREENGUARD Gold at: http://greenguard.org/en/index.aspx.

Integrity

Nothing is more important to our business than building and maintaining trust with our customers. For our company, integrity is at the very core of our business and is founded on our steadfast commitment to the following guiding principles: Do the Right Thing, Teamwork, Responsible Sourcing and Safe Products. Each of us at Lumber Liquidators plays an important role in modeling these guiding principles each day through our actions and ongoing commitment to act with integrity.

In every activity, relationship and interaction, our dedication and commitment to these principles helps maintain Lumber Liquidators’ reputation as an ethical and responsible corporate citizen now and into the future.

Guiding Principles

  • DO THE RIGHT THING

    We are committed to doing the right thing all the time. We must always act with integrity and exercise sound and ethical judgment in everything we do.

  • TEAMWORK

    We are committed to working in partnership and with mutual respect for each other, our customers, and our suppliers. Working together as a team enables us to advance the Company and meet our goals and objectives.

  • RESPONSIBLE SOURCING

    We are committed to sourcing our products in a responsible and lawful manner.

  • SAFE PRODUCTS

    We are committed to providing high quality products that are safe for use by our customers.

Lay it Forward

Giving back to our communities where we live and work is something we believe is good for our business and simply the right thing to do. We encourage associates to volunteer their time and talents to support their local communities, charitable causes and other non-profit organizations that align with their interests and beliefs.

At Lumber Liquidators, we’re committed to making a lasting difference in the communities in which we operate.

We call our community support program “Lay It Forward” and, since 2007, Lumber Liquidators has donated more than 300,000 square feet of flooring to nonprofit organizations, schools, arts facilities, community groups and more.

Whether it’s the responsible harvesting of hardwoods throughout the world, donating time or money to local charitable organizations, or creating jobs in communities around the country and around the world, we are contributing to a better future.

Learn more about Lumber Liquidators’ “Lay it Forward” program