NEW YORK (TheStreet) -- Lumber Liquidators (LL) - Get Report shares are falling, down 6.18% to $55.79, in trading on Thursday after a $5 million class-action lawsuit was filed in Florida against the hardwood flooring company.

The company's stock was in positive territory today before Reuters reported about the lawsuit about three hours ago. The suit was filed on Tuesday.

The lawsuit claims that the company "deceptively manufactured, labeled and sold the toxic laminate flooring." This is the second lawsuit the company has faced over similar grievances since plaintiffs in California brought a suit against the company late last year.

The company has been under increased scrutiny following a '60 Minutes' news report this past Sunday that investigated the levels of toxic formaldehyde found in the company's products.

TheStreet Ratings team rates LUMBER LIQUIDATORS HLDGS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate LUMBER LIQUIDATORS HLDGS INC (LL) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• Despite its growing revenue, the company underperformed as compared with the industry average of 13.5%. Since the same quarter one year prior, revenues slightly increased by 4.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
• LL has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.09 is very weak and demonstrates a lack of ability to pay short-term obligations.
• 39.15% is the gross profit margin for LUMBER LIQUIDATORS HLDGS INC which we consider to be strong. Regardless of LL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 5.91% trails the industry average.
• LUMBER LIQUIDATORS HLDGS INC's earnings per share declined by 20.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, LUMBER LIQUIDATORS HLDGS INC increased its bottom line by earning $2.77 versus $1.68 in the prior year. For the next year, the market is expecting a contraction of 3.2% in earnings ($2.68 versus $2.77).
• You can view the full analysis from the report here: LL Ratings Report