How Rite Aid Corporation (NYSE:RAD) Ended Up Paying Millions in Penalties?

Posted by George Brook September 30, 2013 0 Comment 912 views

Rite Aid Corporation (NYSE:RAD) will give Marin County settlement funds, post the statewide lawsuit that was settled last week. The lawsuit had claimed that the company has unlawfully handled and disposed of different hazardous materials and wastes in California over a period of 6 ½ years.  This suit had been filed in 2013 September in San Joaquin County and had been led by the San Joaquin, Los Angeles and Riverside District Attorneys.

Wastes of various kinds

The allegation was that 600 Rite Aid Corporation (NYSE:RAD) stores had been disposing and handling bleach, pesticides, aerosols, paint, solvents, bio-hazardous and pharma wastes and solvents as well as numerous other corrosive and ignitable material, unlawfully.

From 2009 to the present day, investigators and prosecutors in the District Attorney’s office in Marin County had conducted waste-inspections at the company’s landfills and facilities across the state. These investigations had been carried out in conjunction with environmental regulators and investigators in the region. The probes revealed that the company had been sending hazardous waste unlawfully to the landfills in the area.

The penalties

The District Attorney’s office reported that the company will now pay them penalties to the tune of $15,000. Separately, the CUPA will receive $10,000. These funds will be held in reserve for any future environmental cases and prosecution. The Marin Country has 4 Rite Aid Corporation (NYSE:RAD) locations- San Rafael, Mill valley, Novato and Corte Madera.

The final judgment

Under the final-judgment, the company has been directed to pay $10.35M in costs and civil penalties. An additional amount of $1M will be used to fund some supplemental-projects that will further environmental enforcement and consumer protection in California. Under the terms of the permanent injunction that has been passed, Rite Aid Corporation (NYSE:RAD) is permanently bound, prohibiting and such future violations of the law.

About George Brook

George Brook covers money and politics for GDP Insider. George is a veteran journalist who has also covered Congress, national political conventions and presidential politics. George also covers the White House as well as economic and domestic policy for GDP insider. George's reporting has won numerous awards, including two Scripps Howard awards, two National Headliners, two Gerald Loeb Awards, as well as honors from Sigma Delta Chi and the National Press Club.

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