(CNBC) — Lumber Liquidators has said that it stands by "every single plank" of its flooring and that it's the victim of reports "driven by a small group of short-selling investors who are working together for the sole purpose of making money by lowering our stock price."
Experts told CNBC that many U.S. manufacturers aren't doing what they could to ensure product quality and safety—or to protect themselves when things go wrong.
"Probably 98 percent of the time when there is a product problem in China, a lot of the blame lies with the American company," said Dan Harris an attorney who edits the China Law Blog.
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Harris said he receives about five requests each week from Western companies asking for legal help on problems with Chinese suppliers. But his firm always turns down those requests because "they are usually not in a very good position to get compensated."