Lumber Liquidators (LL) is plummeting after the Centers for Disease Control and Prevention, or CDC, said in a statement that the cancer risk from certain of Lumber Liquidators’ laminate flooring products is higher than initially reported.

WHAT’S NEW: The CDC’s statement noted that its original model in its evaluation of Lumber Liquidators’ products had an error that has now been corrected to reflect greater exposure to formaldehyde, and hence, an increased risk of cancer associated with exposure to the flooring. The original CDC indoor air model used an incorrect value for ceiling height, resulting in health risks being calculated using airborne concentration estimates about three times lower than they should have been. Note that CBS’s “60 Minutes” reported on Sunday that it was alerted to the possibility that scientists had not converted feet to meters in some calculations. The CDC added: “Currently, CDC/ATSDR is conducting a quality review of the indoor air model and the revised results. The new draft report will be reviewed by CPSC, EPA, and HUD. The revised report will be posted when available.”

WHAT’S NOTABLE: On February 16, Lumber Liquidators Chief Executive Officer John Presley issued a letter to employees and shareholders informing them he had been diagnosed with cancer. The letter reads, “I wanted to let you know that I have been diagnosed with leukemia. The good news is that it is a very treatable form of the disease with standard protocols for treatment, and we have caught it very early… I have been advised that I will be able to stay actively involved in the day-to-day operations of the company throughout the process.”

ANALYST REACTION: Stephens analyst Rick Nelson said he expected Lumber Liquidators shares to give up the gains they’d experienced since the initial CDC report on February 10. Shares of Lumber Liquidators had advanced about 17.5% from February 10 until Friday, February 19.