Thursday March 5, 2015
Last Sunday Evening Sixty Minutes did a piece accusing Lumber Liquidators LL of using sub standard flooring that exceed formaldehyde limits set by the California Air Resources Board CARB.
Here is the company response. LL notes that there are a group of short sellers betting on a lower stock price that are mounting a campaign to lower the price. Well that's for sure. In their statement LL denies the Sixty Minutes accusations and indeed claims their Chinese suppliers say the product is compliant.
Barry Minnow is not sitting in jail for mounting a similar campaign against Lennar Homes.
In this social media of the moment 24/7 news cycle, it is easy to make an unsubstantiated claim for short term gain.
As you can see the price has been cut in half. It started falling last week as no doubt the news leaked on the story.
What is the real story, for now that tis unclear. But LL certainly deserves a decent hearing in which their comments are not edited out to favor a pre determined outcome. Innocent until proven otherwise?
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