Lumber Liquidators Settles With Federal Government

Discount flooring superstore Lumber Liquidators has found itself under two separate federal investigations this year: one alleging that some of their products give off potentially dangerous chemicals, and another alleging that the company illegally imported hardwoods. They’ve now settled the latter charge by pleading guilty, and will pay $10 million to the federal government and a wildlife charity.

The company agreed that it will plead guilty to the Lacey Act, a law that bans illegally-harvested animal and plant products, including trees, from sale in the United States. Pleading guilty settles this case, but means that the company will pay finds, donations to relevant charities, and forfeiture of money that the company made from selling the affected hardwoods.

While the company has pleaded guilty to a felony, you can’t imprison corporations. Instead, Lumber Liquidators will pay a $7.8 million fine to the federal government, contributions of $880,825 and $350,000 respectively to the National Fish and Wildlife Foundation and the Rhinoceros and Tiger Conservation fund, and a forfeiture payment of $969,175.