Toano-based flooring retailer Lumber Liquidators Holdings Inc. said it will pay up to $30 million to settle a class-action lawsuit brought by customers who claimed its Morning Star Strand Bamboo flooring was defective.
The so-called “Gold litigation,” after lead plaintiff Dana Gold, a California resident, was filed in 2014 in U.S. District Court for the Northern District of California.
The lawsuit claimed the flooring was “subject to premature cracking, splitting, warping and shrinking, all well before the warranted useful life.”
Lumber Liquidators said in a regulatory filing this week that it has entered into a definitive agreement with the Gold plaintiffs to settle the case, without an admission of fault or liability.
The company said it will contribute $14 million in cash and provide $14 million in store-credit vouchers, with a potential for an additional $2 million in store-credit vouchers.
The settlement covers customers in the United States who bought, for personal, family or household use, Morning Star Strand Bamboo flooring from Jan. 1, 2012, to March 15, 2019. The settlement must be approved by a judge.
Lumber Liquidators said it believes that its cash flow from operations, together with existing liquidity sources, is sufficient to fund the settlement.
Lumber Liquidators has 416 locations in North America. The company plans to move its corporate headquarters later this year to the former Southern Season grocery store space in the Libbie Mill-Midtown mixed-use development off Staples Mill Road in Henrico County.