City Attorney Hydee Feldstein Soto Announces $7.9 Million Settlement in Statewide Environmental Protection Lawsuit

LOS ANGELES — City Attorney Hydee Feldstein Soto May 22 announced that the statewide coalition her office is part of has settled its civil lawsuit against XPO Inc. and XPO Logistics, a global freight and shipping company alleged to have violated California laws related to the storage and handling of hazardous materials at facilities it owned or leased throughout the state of California, including two in the city. XPO will pay $7.9 million in penalties – $685,000 of which will go to the Los Angeles city attorney’s office and $304,000 to the Los Angeles Fire Department Certified Unified Program Agency. In addition, XPO is required to make upgrades and changes to its protocols and facilities, including hiring an environmental compliance manager to ensure adherence with California Law relating to underground storage tanks, hazardous waste, hazardous materials and above ground storage tanks.  

The settlement was entered in conjunction with 20 district attorneys’ offices. XPO’s corporate office and environmental compliance group were extremely cooperative with the prosecutors throughout the investigation and settlement process. This Stipulated Final Judgment shall be in place for a minimum of five years.

“California’s stringent environmental protection laws have been enacted for a reason, and when they are violated, we will take action,” said Hydee Feldstein Soto, Los Angeles City Attorney. “I am proud to have partnered with this coalition to protect public health and safety here in our city, and throughout California.” 

XPO owned, operated, licensed, or leased freight transportation and logistics services with facilities throughout the State of California, including in the City of Los Angeles. Through the regular course of business, they stored hazardous materials at these facilities, including ignitable, toxic, and corrosive materials. Despite being legally responsible for compliance with numerous provisions of California’s Health and Safety Code related to the management of hazardous materials, aboveground petroleum storage tanks, and underground storage tanks, XPO failed to prevent the violations.    

This litigation was managed by the City Attorney’s Public Rights Branch which is also overseeing the recently announced lawsuit filed against more than two dozen chemical companies over toxic substances known as “forever chemicals” that don’t readily break down in the environment. Another environmental lawsuit — against Monsanto over PCB contamination in LA waterways — is continuing.