Lumber Liquidators reported a wider-than-expected first-quarter loss and sales declined for a fifth straight quarter as the Toano-based flooring company spends heavily to put behind it damaging reports on potentially dangerous products imported from China.

The company will contribute $26 million and a million of its shares to a settlement fund to resolve a related class action.

That follows an announcement last month that Lumber Liquidators would pay $2.5 million to settle allegations that some of its products violated California’s air-safety standards. Last year, it paid $13.2 million in fines and pleaded guilty to environmental crimes for importing China-made flooring that contained timber illegally logged in eastern Russia.

Lumber Liquidators has been doing damage control and attempting to restore its reputation since a February 2015 airing of CBS news show “60 Minutes,” which revealed that some of the chain’s Chinese-made laminate flooring contained high levels of formaldehyde.

For the period ended March 31, Lumber Liquidators Holdings Inc. lost $32.4 million, or $1.20 per share. A year earlier, it lost $7.8 million, or 29 cents per share.

The $32.4 million in losses far exceeded those projected by Wall Street, which had forecast per-share losses of 27 cents, according to analysts surveyed by Zacks Investment Research.

Shares slumped 9 percent before the opening bell Tuesday. Shares were down 12 percent, or about $1.62, around 10:15 a.m.

Since the “60 Minutes” report, the company’s stock has plunged more than 70 percent.

Selling, general and administrative expenses increased to $117.2 million from $97.7 million. This is mostly due to an approximately $16 million charge related to its consolidated securities class action matter.

Revenue dropped to $233.5 million from $260 million. That’s below the $239.2 million in revenue that analysts polled by Zacks predicted.

Sales at stores open at least a year, a key indicator of a retailer’s health, tumbled 13.9 percent.