In shades of bronze, a building of color, against historys white marble. This is not the museum of tragedy. It is not museum of difficult moments. It is the museum that says, here is a balanced history of america that allows us to cry and smile. Ive done close to 150 expeditions, and as i look back upon my history, the most important discoveries were the ones that i didnt know were there. Logan bob ballard discovered the titanic in 1985, and as youll see tonight, he hasnt stopped exploring. Oh, i love that. Logan when youre operating 2,000 feet beneath the sea, you never know what youll find. Oh, beautiful. Oh, wow. Holy cow. Wow logan . Or what will find you. Kroft im steve kroft. Stahl im lesley stahl. Cooper im anderson cooper. Whitaker im bill whitaker. Logan im lara logan. Pelley im scott pelley. Those stories tonight on 60 minutes. This is my body of proof. Proof of less joint pain. And clearer skin. This is my body of proof that i can fight Psoriatic Arthritis from the inside out. With humira. Humira works by targeting and helping to block a specific source of inflammation that contributes to both joint and skin symptoms. Its proven to help relieve pain, stop further joint damage and clear skin in many adults. Doctors have been prescribing humira for nearly 10 years. Humira can lower your ability to fight infections, including tuberculosis serious,sometimes fatal infections and cancers, including lymphoma, have happened, as have blood, liver and nervous system problems, serious allergic reactions, and new or worsening heart failure. Before treatment, get tested for tb. Tell your doctor if youve been to areas where certain fungal infections are common, and if youve had tb, hepatitis b, are prone to infections, or have flulike symptoms or sores. Dont start humira if you have an infection. Visit humira. Com and talk to your rheumatologist. Humira. This is a body of proof cooper Lumber Liquidators is the largest retailer of Hardwood Flooring in north america, with over 360 stores in 46 states and revenues of more than a billion dollars a year. But hardwood isnt the only product they sell. More than 100 million square feet of the companys cheaper laminate flooring is installed in American Homes every year. Lumber liquidators is a u. S. Company, but much of its laminate flooring is made in china. And as we discovered when we first reported this story in march, it may fail to meet health and Safety Standards because it contains high levels of formaldehyde, a known cancer causing chemical. Lumber liquidators has insisted ever since our report that its chinesemade laminate flooring is safe, but it doesnt appear that way based on what we learned from our own reporting, and from the work of people like denny larson. You want the company to remove all the flooring . Denny larson every single board. At their cost and replace it with clean flooring. Cooper how much is that going to a cost . Larson you know what . I dont care. Because theyre guilty of selling people product that could make them sick. Cooper these worried california homeowners, who didnt want to be identified, arent waiting for Lumber Liquidators. They are ripping up their floors now. But many cant afford to replace the flooring on their own. Larson they dont know what to do. They have flooring that they think is making them sick. Cooper California Environmental activist denny larson teamed up with richard drury, a prominent environmental attorney, to test Lumber Liquidators chinesemade laminate flooring. Do you have any idea how much of this wood is in peoples homes right now . Richard drury we believe there are probably tens of thousands of households in california that have installed Lumber Liquidators chinese laminates that may exceed the formaldehyde standards. Cooper nationwide . Drury nationwide, its probably hundreds of thousands. Cooper drury and larson bought more than 150 boxes of laminate flooring at stores around california and sent them to three certified labs for a series of tests. The results . While laminate flooring from home depot and lowes had acceptable levels of formaldehyde, as did Lumber Liquidators americanmade laminates, every single sample of chinesemade laminate flooring from Lumber Liquidators failed to meet california formaldehyde emissions standards, many by a large margin. Drury the average level in Lumber Liquidators products that we found was over six to seven times above the state standard for formaldehyde. And we found some that were close to 20 times above the level thats allowed to be sold. Cooper that sounds like a huge amount. Drury its a startling amount. It was so high, in fact, that one of our test labs thought their machine was broken. Cooper the lab itself thought. Larson it hit the upper limit on the radar gun. And they thought it was broken. Philip landrigan its not a safe level, its a level that the u. S. E. P. A. Calls polluted indoor conditions. Cooper would you want that in your home . Landrigan no. Cooper dr. Philip landrigan of new yorks mt. Sinai hospital specializes in environmental pediatrics and exposure to toxic chemicals. Hes talking about the results of another kind of test drury and larson conducted measuring the concentration of formaldehyde emissions coming off the laminates into the air of a typical home. Landrigan i would say long term exposure at that level would be risky because it would increase the risk for chronic respiratory irritation, change in a persons lung function, increased risk of asthma. Its not going to produce symptoms in everybody, but children will be the people most likely to show symptoms at that sort of level. Cooper children are featured prominently in Lumber Liquidators ads, and the company likes to promote the donations of flooring they make to habitat for humanity, Ronald Mcdonald house charities, schools, and community centers. Trust the people over two millions families trust. The flooring experts at Lumber Liquidators. Cooper and on their website, Lumber Liquidators promises that all of their flooring meets or exceeds rigorous emissions standards. And they say we not only comply with laws, we exceed them. Is that true . Drury that is not a true statement. Cooper is it legal to sell these boxes of wood in california . Drury no, it is not. It is illegal to sell these boxes of wood in california. We hope that they will not sell these products anywhere in the nation, because they are above the healthbased standards that the state has set. Cooper drury and larson, who are backed by short sellers a group of wall Street Investors who are betting the company is overvalued have sued Lumber Liquidators, accusing them of violating californias toxic warning statute. Drury has also launched a Class Action Lawsuit against the company. It is legal for flooring to contain formaldehyde. The chemical is present in some of the cheap glues used in factories like this one in china. This footage was recorded by investigators hired by 60 minutes. Formaldehyde is in the glues used to bind wood particles together to make the core boards in laminate flooring. The laminated top, which covers the core board, keeps most of the formaldehyde emissions trapped inside. But formaldehyde does leak into the air. How much is inhaled by homeowners depends on how much formaldehyde is in the glue and how much ventilation is in the home. Larson youre in a chamber, so youre living with it. Youre sleeping in there. And youre constantly exposed. Thats the threat. The constant exposure to a potent carcinogen over a long period of time. Cooper because formaldehyde can cause Myeloid Leukemia and nasopharengeal cancer at high levels and respiratory issues as well as eye, nose, and throat irritation at even low levels, california has strict standards for how much of the chemical the core boards in laminate flooring can emit. Every box of laminate flooring Lumber Liquidators sells carries this label, stating its carb phase two compliant. Carb is an acronym for the California AirResources Board, which sets strict standards for formaldehyde emissions in wood flooring. Congress adopted californias limits when it passed the formaldehyde standards act in 2010. That law is scheduled to take effect nationwide this year. Drury and larson only had wood tested that was being sold in california. But we wondered if the chinese made laminate flooring that Lumber Liquidators is selling nationwide also has high levels of formaldehyde. So we went to stores in virginia. Florida. Texas. Illinois. And new york. And bought 31 boxes of it. We sent the samples for testing at two certified labs. It turns out of the 31 samples of chinesemade laminate flooring, only one was compliant with formaldehyde emissions standards. Some were more than 13 times over the california limit. Both labs told us they had never seen formaldehyde levels that high. But when we took those test results to Lumber Liquidators founder and chairman tom sullivan, he refused to accept the methodology as valid and points out the company is not required by law to test their finished products like we did. Tom sullivan its not a realworld test of the laminate; its not the way its used. Cooper you say you dont believe in this test, but what you believe doesnt really matter its what the California AirResources Board believes. And they believe in this test. Sullivan we will do whatever the regulations are. Cooper i just dont understand how a group can do tests on your chinesemade laminates and every single one of those failed to meet the emissions standards. Sullivan people have Different Reasons for this test. This is a group of lawyers who are suing us selling short on our stock. Cooper but the short sellers are not conducting this test, its these certified labs. Sullivan but it started with short sellers. Cooper one of the first people to raise questions about Lumber Liquidators back in 2013 was Whitney Tilson, a wall street hedge fund manager. He has shorted the companys stock but is not involved in any lawsuits against it. Whitney tilson in 16 years of professional money management, ive seen hundreds of companies do all sorts of bad things to get their stock prices up. But this has got to be the worst. Cooper Whitney Tilson studies the workings of companies hes interested in investing in, and he noticed the Profit Margins at Lumber Liquidators seemed unusually high compared to its competitors. Tilson when you see a commodity business suddenly double its Profit Margins, that raises red flags. Cooper because its hard to have your profit margin double in two years . Tilson exactly. Its almost unprecedented for a company. Cooper based on those profits, Lumber Liquidators stock price had gone from 13 a share in 2011 to 119 in 2013. Tilson suspected the Company Might be breaking the law. He learned there was already a federal investigation looking into the company for allegedly buying timber illegally logged in russia. U. S. Agents raided Lumber Liquidators headquarters in september of 2013. The Company Denies buying illegally logged wood but admits that the department of justice is seeking criminal charges against them. Six months after he bet millions the stock would go down, Whitney Tilson got tipped off by someone familiar with Lumber Liquidators operations in china, who said he was missing the bigger story. Tilson the much bigger story, he said, is that Lumber Liquidators was almost certainly purchasing formaldehydetainted laminated flooring in china. Cooper why would Lumber Liquidators purchase wood thats tainted with formaldehyde . Tilson the answer is greed, plain and simple. Its cheaper and net, it reduces the cost by about 10 . Cooper which in a business with these kinds of Profit Margins, 10 means its a lot of money . Tilson its enormous. Sullivan our goal is to sell a good product at a good price. And we dont get the price by skimping on anything. We get the price by low overhead, huge volume, and being very efficient at what we do. And were never going to a sell something unsafe. Cooper do you trust your mills in china . Sullivan we do. We have inspectors that double check them. The mills are licensed by california. The chinese mills we deal with in the laminates are licensed by california. Cooper when you say its licensed by california, what that really means is california says this mill is capable of making carb 2 compliant product. California is not saying every piece. Every product coming out of this mill is carb 2 compliant. Sullivan but our specs are to make it to california standards. Cooper but for months, we had been hearing from former Lumber Liquidators employees, suppliers, and industry competitors that their chinese made laminates are not being made to california standards. So we sent our investigators undercover to the city of changzhou, the laminate flooring capital of the world. Posing as buyers, and using hidden cameras, the investigators visited three different mills that manufacture laminates for Lumber Liquidators. Employees at the mills openly admitted that they use core boards with higher levels of formaldehyde to make Lumber Liquidators laminates, saving the company ten to 15 on the price. At all three mills, they also admitted falsely labeling the companys laminate flooring as carb 2, meaning it meets california formaldehyde emissions standards, and the new u. S. Federal law. At this factory, the general manager told investigators Lumber Liquidators is one of their biggest customers. This is a bestseller for Lumber Liquidators. For Lumber Liquidators . Yeah . Yeah. How long have you been selling this . From last year. Is this carb 2 . Cooper carb 2 means its compliant with california law. But listen to what the general manager told us. No, no, no. I have to be honest with you. Its not carb 2. Can i get carb 2 . Yes, you can. Its just the price issue. We can make carb 2 but it would be very expensive. Cooper and thats the same thing the Undercover Team was told at all three mills they visited. All this stuff here, Lumber Liquidators. All their labeling is carb 2, right . But its not carb 2 . Not carb 2. Cooper remember, Lumber Liquidators founder and chairman tom sullivan says that he trusts the chinese mills his company uses. Employees at all three mills told us the laminates they make are not carb 2 compliant. I want you to look at this. We shared some of our hidden camera footage with him. Sullivan i dont know the whole situation here. I will guarantee well be in that mill tomorrow and test it. And that is not anything we can condone in any way, to save a cent. Cooper this concerns you . Sullivan yeah, yeah, of course. Cooper is this acceptable to you . Sullivan if its true, no. Cooper all three mills told us they falsely label your products as carb 2 compliant thats cheating. Sullivan that would be if thats true. Cooper nobodys ever reported this to you . Sullivan again, we will investigate it. If there is anything going on, we will stop it immediately. I dont know if its true or not. I dont know what the whole story is, but we will investigate it immediately. Cooper it certainly calls into question not just these mills, but it calls into question your oversight of these mills. Sullivan it could, yes. Cooper two months after we first broadcast this story, Lumber Liquidators pulled all its chinesemade laminate flooring from the market nationwide. Also since then, the chief executive officer resigned and the chief Financial Officer was replaced. The chief merchandising officer, who was in charge of sourcing from china, was fired. Multiple state and federal investigations are underway by agencies including the Consumer Product safety commission, the California AirResources Board, and the department of justice. This past week, a spokesman for the company said Lumber Liquidators has taken and continues to take significant steps to investigate these issues and reassure our customers. Cbs money watch update brought to you in part by glor good evening. Germanys Angela Merkel said today greece cannot expect its debt to be cut. Dish network and sinclair broadcast agreed to a shortterm contract extension as talks continue. And fed minutes on wednesday could offer new clues about a potential september rate hike. Im jeff glor, cbs news. Dunkin donuts kcups are available here at the grocery store. And people seem to be really e