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O’Reilly Auto agrees to $9.9M settlement in California

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Springfield-based O’Reilly Automotive Inc. (Nasdaq: ORLY) agreed to pay $9.9 million to settle a civil lawsuit in Alameda County, California, that accused the retailer of mishandling hazardous waste.

The settlement resolves allegations filed Nov. 17 that more than 525 O’Reilly Auto Parts stores in California over a five-year period unlawfully handled, transported and disposed of used oil, oil filters, and hazardous wastes and materials, including automotive fluids, alkaline batteries, electronic waste and aerosol cans. Alameda County Superior Court Judge Brad Seligman delivered the judgment, according to a Dec. 2 news release from the office of Tulare County District Attorney Tim Ward.

Ward and 49 other California district attorneys conducted undercover inspections in 2013 and 2014 of waste bins originating at O’Reilly Auto Parts stores. The statewide inspections found several O’Reilly Auto stores and two distribution centers allegedly transported hazardous wastes to local landfills that weren’t permitted to receive them.

The settlement includes $6 million in civil penalties, $1.5 million to fund environmental projects furthering consumer protection and enivonrmental enforcement in California, and $500,000 to reimburse the costs of the investigation, according to the release.

According to Ward’s office, O’Reilly Automotive has been cooperative throughout the investigation process and quickly responded to complaints by developing policies and procedures to stop the alleged illegal activity. Stores are required to maintain hazardous waste in special containers for collection and disposal by state-registered haulers.

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