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.
Frequently Asked Questions
The U.S. Attorney is investigating Wal-Mart's practices regarding the transportation and disposal of hazardous waste, specifically concerning returned merchandise. The government alleges that the company's method of transporting these materials from its stores to a central Return Center using company trucks may violate the Resource Conservation and Recovery Act (RCRA).
The U.S. Attorney contends that RCRA requires certain materials classified as 'hazardous waste' to be shipped directly from the store to a certified disposal facility by a certified hazardous waste carrier. Wal-Mart's practice of consolidating these materials at a Return Center before disposal is allegedly in violation of this requirement.
Wal-Mart is fully cooperating with the investigations by the U.S. Attorney's office, as well as state and local authorities in California and Nevada.
At the time of this filing, Wal-Mart cannot predict the outcome of the investigation or the potential financial losses that may arise from this matter. Investors should monitor future filings for any updates on potential fines or liabilities.