pool adsThere are More Important Issues for Lumber Liquidators Holdings Inc (NYSE:LL)
The DOJ settlement announced Wednesday night satisfied one of three concerns for Lumber Liquidators Holdings Inc (NYSE:LL), but this was not the important one. Yes, legal matters are always important, but the financial impact of this was expected to be about $10,000, LL put the money aside for this already, so the final settlement agreement is of no surprise.
The other two issues are related to each other, but completely unrelated to the DOJ issue. Those concern CA Carb2 violations, class action lawsuits, and the CPSC investigation. Those are the major concerns, where the DOJ fines are much more minor in scope of potential financial impact.
Specifically, it is fathomable that a recall from the CPSC could bankrupt LL, and although I think that the CPSC will return a favorable decision my opinion does not change the associated risks, and they are much more serious than the DOJ fines were expected to be.
The increase in LL on the heels of this news is not warranted.
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