Walmart (NYSE: WMT) has agreed to a $7.5 million settlement with California over allegations of illegally disposing hazardous waste in municipal landfills across the state. The settlement, announced Tuesday by California Attorney General Rob Bonta, addresses the improper dumping of various toxic materials including batteries, aerosol insecticides, cleaning supplies, electronic waste, and latex paints.

The retail giant will pay $4.3 million in civil penalties and $3.2 million in reimbursements, pending approval from an Alameda County Superior Court judge. The agreement also requires Walmart to undergo three annual waste audits by an independent third-party auditor at its California facilities over the next four years.

State officials conducted 70 inspections between 2015 and 2021, uncovering thousands of containers of toxic materials in municipal landfills, including spray paints, rust removers, bleach, pesticides, and over-the-counter drugs. These disposal practices allegedly violated multiple state laws, including the Hazardous Waste Control Law and Medical Waste Management Act.

The lawsuit, filed in 2021, involved the attorney general’s office, the California Department of Toxic Substances Control, and district attorneys from 12 counties including Alameda, Fresno, Orange, Sacramento, San Diego, and San Bernardino. “Walmart’s illegal disposal of hazardous and medical waste not only violated California laws, but, if left unchecked, posed a threat to human health and the environment,” Bonta said.

Walmart, while agreeing to maintain and modify its hazardous waste programs to ensure compliance, defended its existing practices. The company said that the settlement’s requirement to “maintain” its pre-existing waste compliance program demonstrates its effectiveness.

This isn’t Walmart’s first settlement regarding hazardous waste disposal. The company paid $25 million in a similar California case in 2010, $1.25 million to Missouri in 2012, and pleaded guilty to federal misdemeanors in 2013 as part of an $81 million agreement covering violations in both California and Missouri.

The retailer must share future audit results with state officials and district attorneys from the involved counties as part of ongoing compliance monitoring.

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