NEW YORK (TheStreet) -- Shares of Lumber Liquidators (LL - Get Report) were advancing 6.33% to $17.31 in early morning trading on Wednesday as a California Superior Court ruled in favor of the Toano, VA-based hardwood flooring retailer, denying that it had allegedly failed to warn consumers about cancer-causing formaldehyde in some of its flooring products.
The lawsuit was brought by consumer group Global Community Monitor and Sunshine Park, a hardware and building supply dealer. The two groups will have to pay $100,000 to Lumber Liquidators as reimbursement for costs, Reuters reports.
Global Community Monitor and Sunshine Park filed the lawsuit in 2014, alleging that Lumber Liquidators failed to provide a formaldehyde warning to California consumers.
Lumber Liquidators was also under fire after a CBS "60 Minutes" report alleged it contained dangerously high levels of formaldehyde in its laminate flooring.
In June, Lumber Liquidators settled a case with the Consumer Product Safety Commission that allowed it to avoid a recall of laminate flooring in China.
Separately, 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 articles's author. TheStreet Ratings has this to say about the recommendation:
We rate LUMBER LIQUIDATORS HLDGS INC as a Sell with a ratings score of D. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow and poor profit margins.You can view the full analysis from the report here: LL