Lumber Liquidators climbs on end of investigation

Shares of Lumber Liquidators soared more than 22% on Friday after the U.S. Consumer Product Safety Commission said it will close an investigation into the company's use of formaldehyde in its flooring products.

The news follows an agreement between the CPSC and Lumber Liquidators in which the hardwood retailer agreed to no longer sell laminate wood flooring previously imported from China. The laminate flooring was featured in a February 2015 60 Minutes story and was found to have increased levels of the carcinogen formaldehyde.

Lumber Liquidators also agreed to continue running tests as part of a recall program for people who purchased the laminate flooring between February 2012 through May 2015. According to the agency around 614,000 consumers nationwide purchased the product between 2011 and May 2015. The company stopped selling the flooring last year.

For consumers with the wood installed, the CPSC recommends not pulling up the Chinese-made laminate flooring, which could increase exposure to formaldehyde.  Instead, those with concerns should contact Lumber Liquidators to participate in the testing program. The company has said it will pay for removal of floors or any other changes needed if a home with the flooring has higher levels of formaldehyde.

Lumber Liquidators shares were up $2.99 to $16.22 in early afternoon trading.

Follow Eli Blumenthal on Twitter @eliblumenthal