Lumber Liquidators Inc. said in a regulatory filing with the U.S. Securities and Exchange Commission that it has entered into a consolidated settlement agreement in shareholder and derivative cases filed against the retailer over formaldehyde disclosures.
The Toano-based specialty flooring retailer said it will contribute $26 million to a settlement fund that will be used to compensate investors who bought company stock from Feb. 22, 2012, to Feb. 27, 2015.
It also said it will issue 1 million shares of its common stock to the securities class-action fund with a value of about $16 million based on the $16.02 closing prices of the company’s common stock on April 27.
