The U.S. attorney's office in Los Angeles is conducting a criminal investigation into Wal-Mart Stores Inc.'s handling of merchandise classified as hazardous waste.
The world's largest retailer said in a regulatory filing that prosecutors were probing potential violations of the federal Resource Conservation and Recovery Act, which regulates the transportation, handling and disposal of waste.
The investigation involves merchandise returned to California stores and trucked to the company's return center in Las Vegas.
Wal-Mart previously reported that it had received a grand jury subpoena from the U.S. attorney seeking documents and information relating to the company's handling of merchandise that contained hazardous materials. Such products could include perfumes, aerosols, nail polish, plant food and cleaning solvents, among other things.
The California Department of Toxic Substances Control requested similar documents, the company said, and other state and local officials in California and Nevada have launched investigations.
In a statement Tuesday, a Wal-Mart spokeswoman said the company believed it had complied with all state and federal environmental regulations.
"We are once again reviewing our transportation procedures, taking the necessary action to correct any regulatory problems, and fully cooperating with federal and state officials in California," Wal-Mart spokeswoman Sarah Clark said.
The U.S. attorney's office declined to comment. Wal-Mart disclosed the investigation in a filing Monday with the Securities and Exchange Commission.
A spokeswoman for Toxic Substances Control said the agency was assisting federal authorities in the investigation into the allegedly improper transportation of hazardous materials from California to Nevada.
"They are not registered with the state of California to handle or transport any hazardous wastes," spokeswoman Jeanne Garcia said. "They are not supposed to be dealing with hazardous wastes at all."
An official familiar with the state probe, who spoke on condition of anonymity because of the ongoing investigation, said regulators were looking into several potential violations of California law, including whether Wal-Mart had been using employees not trained in the proper handling of hazardous materials to load, unload and transport potentially dangerous products.
