NEW YORK (TheStreet) -- Shares of Lumber Liquidators (LL - Get Report) are surging by 11.64% to $14.77 in pre-market trading on Friday, after the company settled its case with the Consumer Product Safety Commission (CPSC), thereby avoiding a recall of laminate flooring made in China.
The hardwood flooring retailer has agreed not to sell its existing inventory of laminate flooring previously sourced in China.
Lumber Liquidators stopped offering the laminate more than a year ago, following a report by CBS's "60 Minutes" alleging that the company sold flooring with dangerously high levels of formaldehyde. It will continue to test the homes of customers who previously purchased the product, according to a statement.
"Today's announcement is not intended to cause consumers to pull up Chinese-made laminate flooring installed in their home," the CPSC said in a statement.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
Lumber Liquidators's weaknesses include its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: LL
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.