Home Depot 2010 Annual Report Download - page 18

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Item 3. Legal Proceedings.
In July 2005, the Company received a grand jury subpoena from the United States Attorney’s Office in Los
Angeles, California, seeking documents and information relating to the Company’s handling, storage and
disposal of hazardous waste. The Company is cooperating fully with the United States Attorney’s Office.
Although the Company cannot predict the outcome of this proceeding, it does not expect the outcome to have a
material adverse effect on its consolidated financial condition or results of operations.
As previously reported, in the second and third quarters of fiscal 2006, three purported, but uncertified, class
actions were filed against the Company, The Home Depot FutureBuilder Administrative Committee and certain
of the Company’s current and former directors and employees alleging breach of fiduciary duty in violation of
the Employee Retirement Income Security Act of 1974 (“ERISA”) in connection with the Company’s
return-to-vendor and stock option practices. These actions were joined into one case in 2007, and the joint
amended complaint seeks certification as a class action, unspecified damages, costs, attorney’s fees and equitable
and injunctive relief. On June 7, 2010, the U.S. District Court for the Northern District of Georgia in Atlanta
granted with prejudice Home Depot’s motion to dismiss plaintiffs’ third amended complaint. On June 28, 2010,
plaintiffs filed a notice of appeal with the U.S. Court of Appeals for the Eleventh Circuit. Although the Company
cannot predict the outcome of this matter, it does not expect the outcome to have a material adverse effect on its
consolidated financial condition or results of operations.
In September 2010, the Company was contacted by prosecutors in the four counties in California within the
South Coast Air Quality Management District (“SCAQMD”) and the City of Los Angeles regarding allegations
that the Company sold products in those counties with VOC (volatile organic compound) levels in excess of
amounts permitted by SCAQMD rules. The Company has received an administrative subpoena seeking
documents and information related to the alleged violations. The Company is in the process of responding to the
subpoena. Although the Company cannot predict the outcome of this matter, it does not expect the outcome to
have a material adverse effect on its consolidated financial condition or results of operations.
Item 4. (Removed and Reserved).
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