Lumber Liquidators stock falls 26.4 percent
The stock price of Toano-based Lumber Liquidators fell more than 25 percent Wednesday after the company disclosed it is facing possible criminal charges brought by federal prosecutors.
Lumber Liquidators officials also said in a conference call that they were expecting a negative report on the company on the CBS television news show “60 Minutes,” according to CNBC.
The company on Wednesday reported fourth quarter earnings of 64 cents per share on $272 million in net sales. Both numbers missed analysts' expectations.
Lumber Liquidators’ stock closed at $50.63 a share on Wednesday, down 26.4 percent from Tuesday.
In September 2013, Lumber Liquidators’ offices in Richmond and Toano were raided by officials from the U.S. Department of Homeland Security’s Immigration and Customs Enforcement and the U.S. Fish and Wildlife Service looking for information about the company’s importation of wood flooring products.
“Since then, we have been cooperating with the federal authorities, including the Department of Justice (DOJ), in their investigation,” the company said in a regulatory filing. “ In recent communications, the DOJ indicated that it is contemplating seeking criminal charges under the Lacey Act… At this time, we do not have enough information to estimate a reasonably possible loss or range of loss that may result from actions by the DOJ as a result of its investigation.”
The Lacey Act is a federal conservation law that prohibits trade in wildlife, fish, and plants that have been illegally sold. According to news reports, the investigation appears to concern wood from eastern Russia.