Facts

The U.S. government and the San Joaquin Valley Unified Air Pollution Control District filed a lawsuit against Post Holdings Inc. and Ralcorp Holdings Inc. alleging violation of the Clean Air Act in connection with their ownership and operation of a facility in Modesto. Defendants manufactured breakfast cereals. RalCorp purchased the facility from Kraft Foods Inc. and operated the facilities until Feb. 3, 2012, when Post took over the operations.

PLAINTIFFS CONTENTIONS:
Plaintiffs contended that defendants' use of certain flavorings and various equipment at the facility emitted air pollutants. As such, defendants violated the California Health and Safety Code. Plaintiffs also contended that defendants violated the Act by failing to obtain required permits for their facility since at least 2004.

Result

The parties entered into a consent decree, under which the court ordered defendants to pay $635,000, split between the EPA and the District, in civil penalties plus interest. Defendants were also required to comply with certain requirements and reporting requirements