LL violates Lacey Act, set to pay $10M in DOJ settlement

[Toano, Va.] Lumber Liquidators announced it has reached a settlement with the Environment and Natural Resources Division of the Department of Justice (DOJ) related to the company's compliance with the Lacey Act, a U.S. conservation law regarding the protection of plants, fish and wildlife. This concludes the DOJ's inquiry launched in 2013, which primarily related to certain foreign suppliers harvesting more timber than their permits allowed in foreign jurisdictions, such as Eastern Russia and the company's importation of flooring products made from this timber. This matter focused on some of the company's hardwood flooring purchase orders and import declarations made concerning the origin of the timber of those orders. 

As part of the settlement, Lumber Liquidators said it has agreed to plead guilty to violations of a customs law and the Lacey Act, and pay a combined total of $10 million in fines, community service payments and forfeited proceeds. The payments include a $7.8 million fine, community service contributions of $880,825 and $350,000 to the National Fish and Wildlife Foundation and the Rhinoceros and Tiger Conservation fund, respectively and a $969,175 forfeiture payment. 

According to Lumber Liquidators, the agreement includes four misdemeanor due care violations of the Lacey Act and a single felony charge for entry of goods by means of false statements. Both the $10 million payment related to the 2013 inquiry and the $3.2 million payment in lieu of civil forfeiture, which remain subject to court approval, will be paid in various phases over the next two years. 

John M. Presley, chairman of the board of directors, commented, "We are pleased to reach this agreement and resolve a legacy issue related to the Lacey Act.  We will continue to focus on strengthening Lumber Liquidators across every area of the organization and executing on our value proposition to improve operational efficiencies and deliver value to our stakeholders.”

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