Summary
This Form 8-K filing from Wal-Mart Stores, Inc., dated December 19, 2005, disclosed that the company is a target of a criminal investigation by the U.S. Attorney's Office in Los Angeles. The investigation, which also involves California state authorities and the State of Nevada, centers on the transportation and disposal of merchandise classified as hazardous waste. Specifically, the U.S. Attorney alleges that Wal-Mart's practice of transporting certain returned merchandise from its stores to its Return Center in Las Vegas using company trucks may violate the Resource Conservation and Recovery Act (RCRA).
Key Highlights
- 1Wal-Mart is a target of a criminal investigation by the U.S. Attorney's Office in Los Angeles related to hazardous waste disposal.
- 2The investigation also involves state authorities in California and the State of Nevada.
- 3The core of the U.S. Attorney's contention is that Wal-Mart's internal transportation of potentially hazardous returned merchandise from stores to its Las Vegas Return Center violates RCRA.
- 4The government argues that such materials, if deemed hazardous waste, must be transported directly from the store to a certified disposal facility by a certified carrier.
- 5The company is cooperating fully with the investigations.
- 6Wal-Mart cannot currently predict the outcome or potential financial impact of this matter.
- 7This filing follows previous disclosures in the company's Form 10-Q for the period ending October 31, 2005, regarding a grand jury subpoena and administrative requests.