Home Depot 2011 Annual Report Download - page 18

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12
Item 3. Legal Proceedings.
As previously reported, 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 (the "Circuit Court"), and on
October 7, 2011, the Circuit Court held oral argument on the appeal. 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.
As previously reported, in September 2010, the Company was contacted by district attorneys in three counties in California
within the South Coast Air Quality Management District (the "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. In June 2011, two related complaints were filed in the Superior Court of California – County
of Los Angeles against the Company. The first action was brought by the SCAQMD and alleges that the Company sold
products with higher-than-permitted VOC levels. This action seeks $30 million in civil penalties and injunctive relief. The
second action was brought by the Los Angeles City Attorney and the district attorneys of each of Orange, Riverside and San
Bernadino counties and alleges that the Company engaged in unfair business practices and false advertising when selling
these products. This action seeks unspecified civil penalties and injunctive relief. Although the Company cannot predict the
outcomes of these matters, it does not expect either to have a material adverse effect on its consolidated financial condition or
results of operations.
Item 4. Mine Safety Disclosures.
Not applicable.