(Reuters) - Lumber Liquidators Holdings Inc (N:LL) said it had reached a settlement with the California Air Resources Board, the state's clean air agency, to resolve an inquiry into the company's laminate flooring products sourced from China.
The agency concluded its review with no formal finding of violation or admission of wrongdoing by Lumber Liquidators, the company said in a regulatory filing on Tuesday.
Lumber Liquidators, whose shares rose as much as 15 percent in morning trading, said it agreed to pay $2.5 million to the agency to resolve the matter.
CBS's "60 Minutes" program cited the agency's tests in a report last March that alleged the company was selling flooring with excessive levels of formaldehyde, a known carcinogen.
Since the report, the company's stock and sales have been hammered and it has been the subject of several investigations and lawsuits.
Lumber Liquidators stopped selling laminates sourced from China in May 2015.
The company's shares, which had lost about 80 percent of their value since the report, were trading at $13.83 on the New York Stock Exchange on Tuesday.