LL & Cabinets To Go Resolve Legal Suit Over Flooring Sales
Richmond, VA, December 4, 2019-Lumber Liquidators and Cabinets To Go have resolved their legal dispute, reports Richmond Biz Sense.
Both companies were founded by Tom Sullivan. The entrepreneur continues to own Cabinets To Go and was chairman of the board until May 2015.
“Sullivan launched Cabinets To Go around 2008, while he was still chairman of Lumber Liquidators, as well as one of its largest shareholders and still technically on its payroll as an employee.”
In 2010, the companies struck an agreement that Cabinets To Go would not directly compete with Lumber Liquidators for ten years; the agreement directly stated that the company would not sell wood floors, which it now does.
In March 2010, Lumber Liquidators brought a suit against Cabinets To Go on these grounds.
“The lawsuit sought $10 million in damages and was moved earlier this year into Richmond federal court, where CTG filed its response that the agreement was no longer valid and the case should be dismissed.
“A judge in early November disagreed, setting the case on a potential path to trial. But a few days later, both sides told the court they had reached a settlement, terms of which were not disclosed publicly in court records.
“The case has since been dismissed. CTG continues to sell wood flooring, according to its website.”
In early September, Sullivan announced that he would attempt to buy back the company he founded, but the effort was shelved by the middle of the month on the grounds that the stock price had risen too high.
Related Topics:Lumber Liquidators