Facts

Under state law, businesses that use or transport hazardous materials over certain limits must file a business plan with the California Environmental Reporting System. Plans are required to include the location, type, quantity, and health risks associated with the materials used or transported. As part of its business, AT&T Corporation had emergency generators at numerous sites across the state. Although the generators at the sites used batteries that contained hazardous materials, AT&T never reported them to CERS. When it realized its oversight, AT&T self-reported its violation. A civil case was subsequently filed in Santa Cruz Superior Court by numerous city attorneys and county district attorneys on behalf of the People of the State of California against AT&T and related entities.

PLAINTIFF'S CONTENTIONS: Plaintiffs contended that the defendants used batteries containing hazardous materials in emergency generators at over 3000 sites across the state; that state law required the defendants to report their use and transport of these materials; the defendants failed to report as required, and the people were entitled to recover for the defendants' failure.

DEFENDANTS' CONTENTIONS: The defendants admitted the plaintiff's contentions.

Result

The parties reached an agreement wherein the defendants agreed to pay $5.9 million to settle the plaintiff's claims. The defendants also agreed to implement compliance and auditing measures to ensure future compliance with applicable hazardous materials laws.