This is the lawsuit that claimed that a lumber Liquidator mis-sold a million dollar worth of lumber a few years ago. So far, no one has been able to prove any wrongdoing on the part of the Liquidators, however the lawsuits continue to rage. The first lawsuit was filed against the Liquidators by the United States Justice Department’s Federal Trade Commission (FTC). There were several reasons that the FTC brought up the lawsuit. One of these being that the company would not allow independent third party auditing of their process or lumber buying in order to see if they are doing everything ethically and properly.
The Problems With Lumber Liquidators Lawsuit
The second lawsuit was brought by the United States Forest Service (USFS). The USFS sent out a press release after the Liquidators ignored a solicitation for bids from three different vendors. This was odd, since the agency works to protect the interests of the USFS and its customers. They are the people who stand to lose the most if the company is not doing everything right and providing customer service. Also, this is a direct violation of the forestry policies and procedures set forth by the USFS.
The third lawsuit is from a former Liquidator employee who left the company for reasons that will be explained shortly.
However, this person did complain about poor working conditions and low pay. The employees were complaining about this for over a year before anyone at the Liquidators came forward to help them out. It was only when the employees reached out to the USFS that anything was done about the situation.
All three lawsuits have a common denominator:
The Liquidators sold lumber that they didn’t actually have. When the law suits were issued, the timber liquidator had to pay for the lumber they sold without actually having it in stock. Then, they had to figure out how to sell it all, which could take months. After all the legal hassles had been dealt with, they still had to figure out how to transport the lumber to their facility. If they only had a small warehouse, the entire process would be delayed even further.
Many of the lumber liquidators’ problems are due to the fact that they only carry enough stock to meet the demand of the consumer market.
It is very hard to keep up with the sheer volume of merchandise that is bought on a regular basis. This causes problems for the companies when it comes to meeting demand and keeping inventory. Timber liquidators also do not perform any quality control checks on their products. Without checking for quality control, the company cannot ensure that they are being as efficient as possible.
There are many other problems with liquidation.
For every negative comment there are a thousand positive ones. One thing that is being noticed with more lumber liquidations is that the company providing the lumber does not have any type of money for their own profits or insurance protection. This means that they are relying upon the insurance claims submitted by the liquidators. If there are injuries or damages being sustained as a result of the lumber liquidation process, the insurance will pay the costs of those injuries or damages.