The Justice Department is seeking criminal charges against Lumber Liquidators for violations under the Lacy Act, which among other things bans imports of illegally logged wood, CNN Money reports.
The charge came amid allegations that Lumber Liquidator’s imported wood flooring products from China contained levels of formaldehyde higher than permitted in the U.S.
According to CNN Money, the two controversies are taking a toll on Lumber Liquidator’s bottom line. The company said Wednesday that net sales plunged nearly 13 percent in March.