Lumber Liquidators falls as gov't searches offices
Lumber Liquidators fall as federal authorities search some of its offices
NEW YORK (AP) -- Shares of Lumber Liquidators dropped Friday as the hardwood flooring retailer disclosed its corporate offices were searched by federal authorities.
THE SPARK: Lumber Liquidators Holdings Inc. said Friday that federal authorities with search warrants showed up at its corporate offices in Toano and Richmond, Va., on Thursday. The authorities were from the Department of Homeland Security's Immigration and Customs Enforcement and the U.S. Fish and Wildlife Service.
The company said that the federal authorities' actions were related to certain wood flooring product imports.
Lumber Liquidators said that it takes sourcing and compliance very seriously and is cooperating and providing the information that the authorities requested.
THE BACKGROUND: Lumber Liquidators said it sources its products directly from about 110 domestic and international mills. It is subject to a range of international and domestic regulations. The company said it has policies and procedures in place for the sourcing, harvesting and manufacturing of its products designed to comply with federal and other regulations related to the importation of wood flooring products.
A call to the company for additional comment was not immediately returned.
SHARE ACTION: The stock fell $10.38, or 9.2 percent, to $102.58 in midday trading. Over the last year, the shares have traded in a range of $47.31 to $115.59. Year to date, the stock has more than doubled.
