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Lumber Liquidators to pay $10M in DOJ settlement

By Amy R. Connolly

WASHINGTON, Oct. 8 (UPI) -- Flooring retailer Lumber Liquidators reached a $10 million settlement with the U.S. Department of Justice over its use of illegally imported timber in 2013.

The company said it will plead guilty to violations of the Lacey Act conservation law for making false import declarations about the origins of the timber used in some of its hardwood flooring. The Lacey Act protects plants, fish and wildlife from illegal trade.

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The company will pay a $7.8 million fine. It will also pay $880,825 and $350,000 to the National Fish and Wildlife Foundation and the Rhinoceros and Tiger Conservation Fund respectively and forfeit $969,175. It is unclear who will receive the forfeiture payment.

"We appreciate the opportunity to have collaborated with the DOJ to develop an Environmental Compliance Plan, which we believe when fully implemented will be one of the strongest and most comprehensive in the industry," Jill Witter, Lumber Liquidator's chief compliance and legal officer, said. "We have invested significant time and resources to strengthen our quality assurance procedures, from enhanced protocols designed to verify licensing, certification and regulatory compliance as well as product sample testing."

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In March, the company's stock plummeted after a 60 Minutes report accused Lumber Liquidators of selling Chinese-made laminate flooring containing toxic amounts of formaldehyde. The Consumer Product Safety Commission also disclosed a probe into the possible health effects of the flooring. The company's CEO, Robert Lynch, resigned in May.

Lumber Liquidators has 370 stores in 46 states.

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