Lumber Liquidators slides on regulator news

A car drives past a Lumber Liquidators Holdings Inc. store in Lombard, Illinois, U.S., on Tuesday, March 3, 2015.
Daniel Acker | Bloomberg | Getty Images
A car drives past a Lumber Liquidators Holdings Inc. store in Lombard, Illinois, U.S., on Tuesday, March 3, 2015.

Shares of embattled flooring retailer Lumber Liquidators slid more than 15 percent on Monday after news that a federal regulator is looking into a recent report that its products may be unsafe.

CBS' "60 Minutes" reported on Sunday that the Consumer Product Safety Commission had requested results from the program's recent tests on Lumber Liquidators' flooring. Those commissioned tests allegedly showed that the company had sold Chinese-made flooring with higher levels of formaldehyde than permitted under California's health and safety standards.

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The CPSC, an independent government regulator, confirmed to CNBC that it had reached out to CBS for the results, but it declined to comment on whether an investigation was underway.

Lumber Liquidators stock traded around $28.11 on Monday afternoon. Shares had topped $67 on Feb. 25 just before the company issued a warning during its earnings call that a negative "60 Minutes" story was coming.

Cramer: The stock capitalizing on Lumber Liquidators
Cramer: The stock capitalizing on Lumber Liquidators