NEW YORK — Lumber Liquidators CEO Robert Lynch has abruptly quit as the company is embroiled in an investigation over products imported from China.
Shares tumbled $4.17, or 16.5 percent, on Thursday to close at $21.10.
The company said Lynch resigned "unexpectedly" and declined to provide more details.
The company this month said that it had suspended the sale of all laminate flooring made in China after disclosing that the Justice Department is seeking criminal charges against it. At the time, Lumber Liquidators said it decided to suspend the sales while a board committee completes a review of its sourcing compliance program.
CBS' news show 60 Minutes reported in March that the Chinese-made laminate flooring contained high levels of the carcinogen formaldehyde.
Lumber Liquidators has sent thousands of free air-testing kits to customers since early March. It has said that more than 97 percent of the kits from those with laminate flooring made in China showed formaldehyde air concentrations that fell within World Health Organization guidelines.
The company has said that it has stopped buying Chinese laminate flooring for now, opting instead for products from parts of Europe and North America.
Lynch, who also served as president and a director, was in the CEO position since January 2012, according to CapitalIQ.
Lumber Liquidators Holdings said its founder, Thomas Sullivan, will take over as acting CEO.
The company also announced that lead independent director John Presley was named nonexecutive chairman.