Lumber Liquidators Sues Insurers Seeking Defense Against Hardwood Flooring Class Actions

MADISON, Wis. — Lumber Liquidators has sued several of its insurers for refusing to extend coverage to more than 100 class actions pending nationwide in which the company is accused of selling formaldehyde-laden hardwood flooring products.

The complaint, which was filed late last month in Wisconsin’s Dane County Circuit Court, also alleges that Lumber Liquidators was billed nearly $175,000 by one insurer as a handling charge for denying the company’s claim.

Lumber Liquidators first sought coverage from its insurers under numerous commercial general liability and umbrella policies after a non-profit environmental group sued the company in July 2014, alleging …