The story, which aired March 1 on the CBS program, alleged that the company sold flooring with higher levels of formaldehyde than permitted under California's health and safety standards.
Read More Got floors from Lumber Liquidators? How to test them for formaldehyd
In a series of public responses, Lumber Liquidators said that "60 Minutes" had used improper testing methods for the cancer-causing chemical, and blamed the report on "a small group of short-selling investors who are working together for the sole purpose of making money by lowering our stock price."
A "60 Minutes" spokesman told CNBC on Friday that the program "did real world tests on the laminates," and one test found "what authorities call 'polluted indoor conditions.'"
Sullivan insisted that the program's tests were "real world," and ridiculed the suggestion that his company would skimp on product safety in favor of saving a few cents.
Read MoreDangerous Chinese products: Blame the Americans
"Even if it's free, we're not going to take it," he said. "We're not going to jeopardize the company over some laminate flooring."
Lumber Liquidators, which has consistently maintained that all of its products were both legally compliant and safe, may sue either "60 Minutes" or some of the vocal short sellers, said Sullivan, who called the likelihood "very possible."
"'60 Minutes' did a great job of scaring people, making up the story," he said.
Sullivan added that his company has begun investigating the Chinese mills in which "60 Minutes" said it had evidence of intentional malfeasance. The Lumber Liquidators founder said that all of the retailer's products from those facilities tested compliant, but the company is still looking into the matter.
But as the company's stock traded at levels about 50 percent lower than before the CBS report, Lumber Liquidators' management held an open conference call on Thursday to lay out its case. On that call (the transcript for which is online) CEO Rob Lynch acknowledged that the company's sales had been hurt by the story, but that the retailer planned to boost marketing spending and adjust prices.
Read MoreLumber Liquidators defends its products in conference call
The company also pledged to offer free indoor air quality testing for qualifying individuals, and to "consider" paying for flooring replacement if a customer is not satisfied.
Whitney Tilson, the founder and managing partner of Kase Capital Management who originally brought the story to the CBS program, said in a Thursday afternoon note that the conference call was "a continuation of the company's campaign of distraction and deception in what I think will prove to be a vain attempt to mislead customers, investors and regulators."
Wall Street analysts' responses to the conference call were not overwhelmingly positive.