Water Contamination Lawsuit

Industry giants to pay $500,000 settlement in environmental lawsuit.

Water Contamination

San Francisco, CA: (May-19-08) The Department of Justice brought charges against GlaxoSmithKline Plc, Motorola Inc., and Siemens Corp., alleging that system failures at the companies' facilities led to the release of trichloroethylene, or TCE, into the public drinking water system in Scottsdale, AZ. The federal complaint stated that the three companies failed to properly treat groundwater for TCE at the site and further failed to alert proper authorities about the release despite being under an agreement to do both.

Federal sources stated that though the facility is owned and operated by the AZ American Water Co. Under the terms of the consent decree, Motorola, Siemens and Glaxo are responsible for the remedy, which requires pumping and treating contaminated groundwater, in order to ascertain that TCE does not exceed an acceptable limit of 5 parts per billion.

As part of a settlement reached in the case, GlaxoSmithKline Plc, Motorola Inc., and Siemens Corp. have agreed to collectively pay a $500,000 civil penalty to resolve allegations. As the violations were of a serious nature, the federal agencies demanded the penalties provided for under the Superfund law for each groundwater violation as well as demanding penalties for inaccurate reporting of the incidents to the regulator. [FORBES: GLAXO, MOTOROLA, SIEMENS TO PAY $500,000 FOR FAILURES AT SUPERFUND SITE: DOJ]

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