Facts

In a coordinated statewide investigation commenced in 2006 by the Attorney General, 21 District Attorneys and two City Attorneys, the People of the State of California (People) investigated Target Corporation regarding potential environmental violations.

A civil suit was filed in June 2009, alleging illegal mismanagement and disposal of hazardous wastes at numerous Target locations throughout California. A preliminary injunction was issued in September 2010 to halt the illegal conduct.

PLAINTIFF'S CONTENTIONS:
Pursuant to the California Health and Safety Code and the California Business and Professions Code, the People alleged that Target was liable for improperly storing, transporting and disposing of hazardous wastes on a continuing basis for several years, including causing hazardous wastes to be trucked to and dumped at municipal landfills not designed, licensed or equipped to handle hazardous wastes. The People also claimed that Target stored incompatible and combustible waste liquids improperly, resulting in an emergency response.

DEFENDANTS' CONTENTIONS:
Target denied any wrongdoing when the suit was filed. In the Final Judgment and Permanent Injunction on Consent, Target made no admissions regarding any issue of law or fact or any alleged violation of law.

Damages

The People sought preliminary and permanent injunctive relief and recovery of civil penalties, investigative and enforcement costs and other relief.

Result

The parties reached a settled approved by the court on March 2, 2011. A permanent injunction orders Target to comply with numerous state laws and regulations regarding the proper management and disposal of hazardous wastes. Target also must retain an independent auditor that will perform annual audits of all Target facilities in California, for three years, and report to the People the results of the audits, including any new violations. In addition, Target was ordered to pay a total of $22.5 million to settle the People's monetary claims. This sum includes civil penalties, costs and supplemental environmental projects funded by Target.