Lumber Liquidators Down Big; CDC Cancer Risk Report Weighing On Investors
Shares of Lumber Liquidators Holdings Inc (NYSE: LL) plunged more than 20 percent Monday morning following a report that the company's flooring has a higher risk of cancer than previously thought.
U.S. regulators reversed its prior finding, which was released on February 10. The Centers for Disease Control and Prevention (CDC) said over the weekend that its prior report contained an error in ceiling heights. As a result, the health risks were calculated using airborne concentration estimates around three times lower than they should have been.
"Health risks of people who have the laminate flooring are being revised to reflect greater exposure to formaldehyde, which could cause eye, nose, and throat irritation for anyone," the CDC stated. "The estimated risk of cancer associated with exposure to the flooring increased."
The CDC has concluded that the estimated risk of cancer is now 6 to 30 cases per 100,000 people after concluded in its February 10 report the risk of cancer is 2 to 9 cases per 100,000 people.
It was nearly one year ago to the date (February 20, 2015) when Lumber Liquidators shares nosedived following the scathing "60 Minutes" report about Chinese laminates. The stock was trading near the $70 level, but fell under $30 within a couple of weeks following the report.
Shortly after Monday's opening bell, the stock was down about 23 percent at $10.96.
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