TOANO, Va. (AP) - Lumber Liquidators has agreed to a $36 million settlement to resolve claims brought by people who bought Chinese-manufactured laminate flooring reported to contain unsafe levels of formaldehyde.
The Virginia-based company said the company will pay $22 million in cash and provide $14 million in store-credit vouchers to consumers who bought the flooring between Jan. 1, 2009 and May 31, 2015, when the company stopped selling the flooring.
Lumber Liquidators announced the proposed settlement Tuesday, saying it has signed a memorandum of understanding to settle all claims brought on behalf of consumers in two lawsuits filed in Virginia.
The agreement still needs court approval.
Chief Executive Officer Dennis Knowles said in a statement that the company welcomes the agreement as "an important step toward resolving this legacy issue and moving forward."