Lumber Liquidators shares jump on deal to plead guilty to some federal charges


Lumber Liquidators shares jumped Wednesday after the flooring company pleaded guilty to federal charges stemming from a 2013 investigation of its imports of flooring products.

The agreement is not related to allegations that some Lumber Liquidators' Chinese-made laminate flooring may contain toxic formaldehyde, which was highlighted in a report on the CBS program "60 Minutes" earlier this year.

That report sent the company's shares tumbling some 41 percent in March.

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The settlement with the Department of Justice is over its compliance with the Lacey Act, a conservation law regarding the protection of plants, fish and wildlife. Lumber Liquidators admitted to importing wood from foreign suppliers, including those in Russia, that harvested more timber than their permits allowed.

The company agreed to plead guilty to violations of a customs law and the Lacey Act, and pay a combined total of $10 million in fines, community service payments and forfeited proceeds.

The stock rose as much as 15 percent after hours, but the shares are still down nearly 80 percent year to date, according to FactSet data. It was last up about 10 percent.