Dive Brief:

• Home-improvement retailer Lowe’s has stopped selling flooring with the same issues that have put Lumber Liquidators at the center of a criminal investigation by the U.S. Department of Justice.

• MarketWatch reported that the Chinese hedge fund analyst whose research led to the “60 Minutes” report accusing Lumber Liquidators of selling flooring with toxic levels of formaldehyde has said Lowe’s sold a similar product with unacceptable levels of the chemical.

• Once the report was published in Seeking Alpha, Lowe’s reportedly pulled the flooring from its special-order inventory and will hire independent testing of the product. The retailer said it did not stock store shelves with the brand in question, but it was available through special order or through its store website.

Dive Insight:

A Lowe’s spokeswoman told MarketWatch that the big-box chain has a letter from the laminates’ Chinese manufacturer certifying that the wood in the product meets environmental regulations.

Still, it’s no surprise the retailer halted the sale of the product, given the trouble it has caused Lumber Liquidators, whose stock value has dropped 61% since the “60 Minutes” report. In addition to the Justice Department charges, more than 103 class-action lawsuits have been filed against the company.