U.S. - Virginia-based Lumber Liquidators Inc (LL) has agreed to a USD 36 million settlement to resolve claims on behalf of more than 700,000 people who bought Chinese-made laminate flooring reported to contain unsafe levels of formaldehyde.

Lumbar Liquidators has signed a memorandum of understanding to settle all claims in two class-action lawsuits filed in the Eastern District of Virginia.

The company will pay USD 22 million in cash and provide USD 14 million in store-credit vouchers to those who bought the flooring between January 2009 and May 2015.

The issue of unsafe levels of formaldehyde in Chinese-made laminate flooring sold by LL was brought forth by investigative reporter Anderson Cooper of 60 Minutes in 2015. The report generated much controversy, causing the plunge of LL stock, the resignation of some of its senior executives - including its CEO - and the questioning of the quality controls in place by Chinese manufacturers and their possible effects on the health of the American consumer.