New York Post On Lumber Liquidators' Surge On Monday: 'Oops, Wrong Settlement'

Shares of Lumber Liquidators Holdings Inc LL surged higher on Monday following reports that the company entered into a plea agreement with a federal judge. According to the New York Post, Wall Street reacted as if the company had finally "put its China-sourced formaldehyde flooring crisis behind it." However, Lumber Liquidators paid $13 million to settle claims that it illegally imported hardwood from a forest in Russia which is also home to an endangered Siberian tiger. "Ooops, wrong settlement," the New York Post noted. Seth Basham, an analyst at Wedbush, told the New York Post that investors and traders overreacted to the news reports on Monday. The analyst also suggested that investors and traders reacted to the news before realizing what was actually in the settlement. Lumber Liquidators' shares flirted with the $15 level on Monday following the press release which appear to have been mis-understood by the market. By late Tuesday morning, shares were trading lower by 3 percent on the day at $12.94.