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Lumber Liquidators hit hard by '60 Minutes' report


When Lumber Liquidators executives talked about earnings in a conference call last week, they alluded to an upcoming "60 Minutes" investigation of the company's business practices. Turns out, the CBS report was a lot more damning than some analysts expected.

The company's shares tumbled drastically on Monday, with the stock price falling more than 24%.

The "60 Minutes" segment anchored by CBS contributor Anderson Cooper highlighted the retailer's alleged practice of using Chinese-manufactured laminate flooring containing high levels of formaldehyde, violating California's health and safety codes. Undercover reporters were shown talking to factory managers in China who admitted to using false labels certifying that the products complied with regulations.

Lumber Liquidators continues to stand by its products, maintaining that the claims against the company are made by short-selling investors.

Watch the "60 Minutes" episode below or by clickinghere.

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