Lumber Liquidators, a hardwood flooring retailer, has agreed to pay the U.S. Department of Justice $10 million to settle criminal charges relating to violations of the Lacey Act.
As per the settlement, the company will plead guilty to violating the Lacey Act, a conservation law that prohibits trade in fish, wildlife, and plants that have been illegally taken, transported, or sold, reported Yahoo! News. They will also plead guilty for lying about the origins of the timber used in its hardwood flooring.
"We are pleased to reach this agreement and resolve a legacy issue related to the Lacey Act," said John Presley, chairman of the company's board of directors. "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."
The company will pay $10 million in total as part of the deal, reported Reuters. $7.8 million will be paid in the form of a fine, another $880,825 as a community service payment, and $350,000 will be paid to the National Fish and Wildlife Foundation and the Rhinoceros and Tiger Conservation Fund.
The hardwood floor company is slated to forfeit an additional $969,175, though the company has failed to specify who will receive the payment.
The lawsuit comes as another hurdle for the flooring company to clear in recent months. In May, CEO Robert Lynch resigned amid ongoing investigations into the company, which included the DOJ inquiry dating back from 2013 and a "60 minutes" report in early March that accused Lumber Liquidators of using toxic chemicals in some of its laminate flooring from China, according to CNN.
With the settlement reached and agreed upon, Lumber Liquidators now has more than 100 class action lawsuits over its flooring to contend with.
