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Lumber Liquidators has its say in hedge fund debacle

Lumber Liquidators issued a statement in response to hedge fund manager Whitney Tilson, whose short position on the company caused shares to plummet nearly 12% on Friday.

Tilson made the announcement at the Robin Hood Investors Conference in New York on Friday, citing allegations surrounding the company's sourcing practices that surfaced earlier this fall.

The company stated that it had not personally discussed these claims with Tilson, and it reaffirmed its denial of the allegations, according to the Wall Street Journal.

“Mr. Tilson’s presentation is based entirely on his own speculation and the contents of a report released almost two months ago, which we had previously stated contained numerous inaccuracies and unsubstantiated claims," said the statement. "We invest significant time and resources to safeguard quality control and compliance.”

According to the report in question, which was published by the Environmental Action Group, Lumber Liquidators has been knowingly sourcing wood from protected forests in Far East Russia, which is home to the endangered Siberian tiger.


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