Lumber Liquidators Stock Price Tumbles to Below 40

Englewood Cliffs, NJ, March 2, 2015—Trading of Lumber Liquidators stock was halted briefly Monday morning and then continued to tumble throughout the day. In the last seven days the stock has dropped from nearly $70 a share to just under $39 a share.

This rapid decline is the result a 60 minutes news story that reported that Lumber Liquidators has been selling laminate flooring with levels of formaldehyde that far exceed allowable limits.

Investors are concerned that the liability associated with replacing the laminate flooring that has already been installed coupled with fines and/or legal settlements could have an adverse effect on the company's profitability.