Lumber Liquidators Floor Deal OK, but Lawyers May See Fees Cut

Lumber Liquidators’ $36 million cash-and-voucher settlement of two class actions alleging that its flooring emitted formaldehyde and lacked durability was properly approved, particularly because it was structured to address concerns about the company’s finances, the Fourth Circuit said Tuesday.

But attorneys’ fees should be calculated under the rules for “coupon” class action settlements, the appeals court said, striking that roughly $10 million portion of the deal. The case will return to the trial court for recalculation.

The U.S. Court of Appeals for the Ninth Circuit recently held that vouchers for cans of tuna weren’t coupons subject to additional scrutiny under ...