Certain types of Lumber Liquidators’ laminate flooring have a higher risk of developing cancer or other types of problems with health than what was previously believed, said health regulators in the U.S. on Monday.
The U.S. Center for Disease Control said on Monday exposure to the formaldehyde in the laminate flooring was greater that it calculated earlier in the month, which means people who bought that flooring are close to three-fold more apt to develop cancer than was estimated previously.
The announcement by health regulators shook investors, which sent the stock at Lumber Liquidators down over 20% in Monday morning trading.
Investors had been somewhat encouraged due to the February 10 report of the CDC that suggested the formaldehyde level in the select types of laminate flooring might cause between 2 and 9 cancer cases for every 100,000 people.
However, the correct figure is between six and 30 per every 100,000 said the CDC on Monday.
The big discrepancy is from the regulators using a wrong figure in the ceiling height in determining the exposure risk.
As well as with cancer, people can become susceptible to higher risks of respiratory issues like nose, throat and eye irritation and asthma.
Lumber Liquidators announced through formal statement that revised calculations overestimated any possible health risks from the products and the company is thankful that the CDC is looking for a wider review of their results.
The issue became known to the public last year during a 60 Minutes program that investigated the products made in China.
Soon thereafter, sales of the company plunged and the Chief Executive resigned.
Lumber Liquidators stopped the sales of the laminate flooring that was made in China in March of 2015 and offered its customers free tests for air quality.
In a matter that is unrelated, Lumber Liquidators agreed recently to a settlement that involved more than $13 million worth of penalties as well as probation of five years after it acknowledged it had been guilty of importing wood illegally that had been in forests, which were home to some endangered species.