AT&T to Settle Hazardous Waste Allegations in California

By Maria Armental 

AT&T Inc. has agreed to pay $23.8 million and strengthen environmental policies to settle allegations it illegally dumped electronic waste in California--the first such action in the state against a telecommunications company, the authorities said Thursday.

The proposed settlement, pending approval in Alameda County Superior Court, requires the Dallas-based company to spend about $28 million over five years to put into practice the new environmental policies under the settlement, such as contractor inspections of "staging bins" before contents are deposited in dumpsters for regular trash and three independent audits over the five-year period.

"This legal action should put others on notice that local and state agencies will continue to work together to investigate and prosecute violations against our environment," Alameda County District Attorney Nancy E. O'Malley said in a news statement.

California authorities have initiated similar actions against auto parts retailers AutoZone Inc. and O'Reilly Automotive Inc.

The authorities alleged more than 235 AT&T warehouse and dispatch facilities had improperly handled and disposed of hazardous waste and materials, including batteries, aerosol cans and certain gels and liquids over a nine-year period.

The company's stock is trading up 1% from Wednesday's close of $41.25.

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