Misleading investors

“Lumber Liquidators Settles Federal Probes Into Laminate-Flooring Claims,” The Wall Street Journal, March 13, 2019.  Total fines paid, plus damages, nearly $100 million.

There’s a word for saying something that isn’t true.  Like how much testing your vendors do, after 60 Minutes airs an episode.

Does Management consider the implications of these “untruths” (Information given to the market)?  Why didn’t the company have controls (Governance) to prevent this type of behavior, and to comply with the law?  Are the directors responsible?  Should they be?  Several senior executives have left, but is that a clean house?

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Filed under Theme One: Information, Theme Three: Compliance, Theme Two: Governance

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