Lumber Liquidators CEO quits, catching company off guard

A man walks past a Lumber Liquidators store, Thursday, March 12, 2015, in Philadelphia. | AP Photo
A man walks past a Lumber Liquidators store, Thursday, March 12, 2015, in Philadelphia. | AP Photo

TOANO, Va. (AP) – Lumber Liquidators CEO Robert Lynch has abruptly quit the company that is embroiled in an investigation over products imported from China.

Shares tumbled more than 18 percent in premarket trading Thursday.

The company earlier this month said that it had suspended the sale of all laminate flooring made in China after disclosing that the Justice Department is seeking criminal charges against it.

The news show “60 Minutes” first reported that the Chinese-made laminate flooring contained high levels of the carcinogen formaldehyde.

Lumber Liquidators Holdings Inc., based in Toano, Virginia, said that its founder, Thomas Sullivan, will take over as CEO while the company searches for a replacement.

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