AutoZone 2011 Annual Report Download - page 79

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In an order dated September 28, 2011, the court denied the four remaining plaintiffs’ motion for leave to file a
Third Amended Complaint because the proposed Third Amended Complaint failed to address deficiencies
previously identified by the court.
We believe this suit to be without merit and are vigorously defending against it. We are unable to estimate a loss
or possible range of loss.
In 2004, AutoZone acquired a store site in Mount Ephraim, New Jersey that had previously been the site of a
gasoline service station and contained evidence of groundwater contamination. Upon acquisition, we voluntarily
reported the groundwater contamination issue to the New Jersey Department of Environmental Protection and
entered into a Voluntary Remediation Agreement providing for the remediation of the contamination associated
with the property. AutoZone has conducted and paid for (at an immaterial cost to us) remediation of visible
contamination on the property and is investigating and will be addressing potential vapor intrusion impacts in
downgradient residences and businesses. Pursuant to the Voluntary Remediation Agreement, upon completion of
all remediation required by the agreement, we are eligible to be reimbursed up to 75 percent of its remediation
costs by the State of New Jersey. Although the aggregate amount of additional costs that we may incur pursuant to
the Voluntary Remediation Agreement cannot currently be ascertained, we do not currently believe that
fulfillment of our obligations under the agreement will result in costs that are material to our financial condition,
results of operations or cash flow.
We are involved in various legal proceedings incidental to the conduct of our business, including several lawsuits
containing class-action allegations in which the plaintiffs are current and former hourly and salaried employees
who allege various wage and hour violations and unlawful termination practices. We do not currently believe
that, either individually or in the aggregate, these matters will result in liabilities material to our financial
condition, results of operations or cash flows.
Item 4. Reserved
17
10-K