On Thursday, federal authorities from the Department of Homeland Security’s Immigration and Customs Enforcement group and the U.S. Fish and Wildlife Service searched the corporate offices of Lumber Liquidators Holdings Inc. (NYSE: LL). In a press announcement Friday morning, the company said the actions were related to the “importation of certain of the Company’s wood flooring products.”
In 2011 the Feds raided the offices of the Gibson Guitar Corp. in Tennessee and charged the famous guitar-maker with trafficking in illegally obtained wood in violation of the Lacey Act, which prohibits trading of a variety of fish, wildlife, plants and plant products, including illegally logged wood. Gibson later settled the charges by paying a $300,000 fine and a $50,000 community service payment to the National Fish and Wildlife Federation.
While it is not known precisely what the Feds were looking for at Lumber Liquidators’ offices, there is no indication that the raid was conducted by people arrayed in full SWAT gear as happened at Gibson. Guitars are probably a lot tougher to subdue than hardwood flooring.
Shares of Lumber Liquidators are down about 9.1%, at $102.66 in a 52-week range of $47.31 to $115.59.