Lumber Liquidators, a Toano-based flooring firm with a large facility in Henrico County, could be the target of federal criminal charges in a controversy over the levels of a chemical in its products.
The Associated Press reports that the Justice Department is seeking criminal charges in a regulatory filing.
The company is accused of using laminate flooring made in China that has dangerously high levels of formaldehyde. The accusation was aired on a recent episode of CBS’s “60 Minutes.”
The firm insists that all of its flooring complies with California standards for formaldehyde emissions.
Lumber Liquidators finances have taken hits in the controversy. Its March sales declined 12.8 percent and it's spent $2.8 million on air-quality assurance programs. The company has lost $10 million and says and its chief financial officer has left.
The firm also faces 100 class action lawsuits.