The shares of Lumber Liquidators are trading higher today after announcing that it hired a new chief compliance and legal officer.
The stock price of Lumber Liquidators increased 7% to $15.12 per share at the time of this writing around 11:09 AM in New York.
Jill Witter joined Lumber Liquidators as chief compliance officer and legal counsel. She previously served as senior vice president, general counsel, chief ethics and compliance officer at Novation LLC.
Under Ms. Witter’s leadership, Novation earned the Ethics Inside Certification from Ethisphere Institute. Novation was also included in the Ethisphere’s lists of the World’s Most Ethical Companies over the past three years.
Ms. Witter has a deep background in compliance and deep experience in Forest products. She also previously served as general counsel at Rayonier and Forest Resources Division of International Paper Company.
Lumber Liquidators has great confidence in Jill Witter
Commenting on her appointment, Lumber Liquidators founder and acting CEO Thomas Sullivan said, “I have great confidence that Jill will help strengthen our compliance programs and reinforce our ongoing commitment to uncompromising integrity in how we conduct ourselves, individually and as a company, as we continue to focus on our strength of providing quality flooring, at the best price, for our customers.”
Ms. Witter has been consulting and advising the compliance team of Lumber Liquidators since early July. She will report directly to Mr. Sullivan. She will be responsible for directing all aspects of legal matters in the company including complex litigation management, compliance program development, quality assurance and public affairs.
Allegation against Lumber Liquidators
Lumber Liquidators is facing an allegation that its laminate flooring imported from China contained dangerous levels of formaldehyde. The California Air Resources Board (CARB) is investigation the accusation, which was denied by the company.
Earlier this month, Lumber Liquidators disclosed in a regulatory filing that it received a notice from CARB that the results of the preliminary testing of the flooring samples obtained in March contained formaldehyde that exceeded the required limit. The company expected that the agency would assert a claim although it is still conducting its investigation. The company hasn’t received a notice of violation from CARB.