Home Depot 2012 Annual Report Download - page 19

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13
Item 3. Legal Proceedings.
We are reporting the following proceedings to comply with SEC regulations, which require us to disclose certain information
about proceedings arising under federal, state or local environmental provisions if we reasonably believe that such
proceedings may result in monetary sanctions of $100,000 or more.
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
Bernardino 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. Both actions are scheduled to be tried
together as a bench trial in May 2013. In March 2013, we tentatively reached a joint settlement agreement to resolve these
actions for an aggregate of $6.9 million, plus $1.1 million in fees and costs. The settlement requires the approval of the trial
court.
Item 4. Mine Safety Disclosures.
Not applicable.