Any company that spot checks its vendors by doing their own tests has a boatload of data to share. I have not seen any. CBS provided us with all the data from the tests performed at two labs. LL has years and years of data yet we hear nothing.
David Strasser drank the Kool-Aid.
If formaldehyde completely off-gasses in a short while, then manufacturers can just let the laminate off gas at the factory and be CARB compliant. Why is truly CARB compliant laminate more expensive? It has to do with the manufacturing process. To keep excess formaldehyde levels in the finished product low, it takes extra effort.
To test installed laminate, some of it must be removed and placed into a vacuum chamber. A whole house test is not conclusive.
LL claims that 60 Minutes used an improper test for formaldehyde in laminate. 60 Minutes used a "deconstructive test" which LL said was not the right test. Before testing,, 60 Minutes checked with the California Air Resource Board to ascertain the proper test. The "deconstructive test" is what CARB uses to measure formaldehyde. 60 Minutes had 31 samples of laminates purchased in three States tested at two different labs.
Somebody is lying.
The shyster lawyers will motion the courts to aggregate all lawsuits into one class action lawsuit. Once the Class is certified, LL must settle for the size of the Class is huge. I expect a BK filing from LL to limit losses due to the class action lawsuit.
What is with the BS of trying to make the problem look small?
Figure this out: CBS tested HD and LOW laminate flooring and they were found to be CARB compliant. What this means is one can have a safe floor if you buy it from a reputable company, not LL.
There are tens of thousands of homes with LL laminate flooring. All need to be changed out. How much for each home? Guess $5k. Then LL has to pay for plaintiff's lawyers. Add this all up and LL is BK.
You will hear this from the company next week.
As large as their suppliers are, they probably sell to HD or Low. But their product was tested by CBS and found to be OK.
There is a reason why LL can undercut everyone else.
LL is a schlock company whose corporate values are to maximize profits at all costs. Telling white lies to customers is OK so long as the bottom line goes up. Enron had these same values.
Companies rely on their values to get them through tough times. People will believe in you despite the flow of bad news. But not LL!
Add to the list: CBS, Tilson, Senator Bill Nelson of Florida. There will be more. Now the first shyster law firm has opened up an investigation. Nothing will save LL.
Hey Smackman, do you know how outgassing testing is done? A sample of the laminate is put in a sealed chamber and formaldehyde is measured. It's that simple. You are thinking of Radon testing.
If you were CBS, would you show data from a Chinese source or data that was from an American lab?
Now a US Senator wants the Federal authorities to investigate LL! It does not get any better than this!
No sympathy for LL. They could have avoided this by being honest with their customers.
Zhao, Tilson; why did it take shorts to uncover LL formaldehyde fraud? What about the CA Air Resource Board as in CARB? They ignored it. LL was told by Zhao about his findings and they ignored him. Tilson telegraphed his short hand and he was ignored by LL. If LL did any testing, they would have known the Chinese were sending them bad stuff.
LL’s official position is that it’s up to their vendors to certify the product to CARB requirements. Is this good enough? Does the average American want to rely on the truthfulness of Chinese manufacturers?
Next week LL will announce their own findings from recent testing of planks from Chinese vendors. They will say, to their surprise, that recent tests show that Chinese sourced laminates are not CARB compliant. They are sorry for the QA breakdown. Any customer who has purchased China sourced laminates can receive a full refund for purchased wood.
Then the shyster lawyers will get involved. Here we have a company that intentionally harmed its customers. LL was told over a period of years that their laminate had too much formaldehyde. They had a chance to cure the defect. If you sat on the jury would you believe this line: “Even though we were told about egregious formaldehyde levels in our product, we relied on our Chinese vendors to self certify the product to CARB requirements. This is all that we are required to do under the law.”
Be honest. If you are on the jury, would you believe the above line?
How long will it take a can of gasoline to oxidize on its own. A thousand years!
You can always drive an oxidation reaction to the right. But at what temperature? And what catalyst is needed?
Did you know that a can of gasoline can be oxidized? Will it do it by itself? Think about this.
Think logically and you will come up with the answer. Why would CA impose a CARB requirement on formaldehyde in laminates formed with phenol-formaldhyde resins? There is no CARB requirement for phenol, just formaldehyde. Why? Reason this out and you will determine that outgassing of formaldehyde is a problem.
Emissions are not the same as breakdown. The fact is that formaldehyde can outgas for years if not decades. Why do you think there is a CARB limit?
Does anyone remember the last company to miss a conference? And to mollify investors, announce a special web cast meeting for the week following? Anyone?
It was GTAT which announced at the special webcast that they were going BK.
LL has cash but the mounting lawsuits can swamp them. Look for a BK announcement.
Formaldehyde does not break down and remains in the laminate. It is a stable molecule. What would cause it to break down? The issue is that there is so much of it in China-sourced LL product that it will outgas for many years.
LOL! FDA = Food and Drug Administration. Since when is wood flooring a food or a drug?
It is not possible for CBS to test huge numbers of laminates from HD, LOW and LL and come up with the wrong answer. Overlay this with the declaration of Chinese manufacturers that LL's product is not CARB compliant.
LL simply did not test product. They relied on the Chinese to self certify. Then with a wink or a nod, they let the Chinese do anything so long as the price was right.
In the near future, lawsuits will be filed from people that got cancer. Or from parents of kids who did not get into their desired college. These cases will go in front of a jury who will rule for the plaintiffs.
In the meantime, LL's business will suffer due to the bad press.