NEW YORK Progress Rail Services Corp. is being investigated by federal authorities for alleged violations of environmental law and improper business practices in California.
Albertville, Ala.-based Progress Rail received a grand jury subpoena from the U.S. District Court for the Central District of California on Oct. 24, parent company Caterpillar Inc. said in a Nov. 1 filing with the U.S. Securities and Exchange Commission.
The subpoena requests documents and information from Progress Rail, its wholly owned United Industries Corp. subsidiary and Caterpillar Inc. relating to allegations that the company conducted improper or unnecessary rail car inspections and repairs and improperly disposed of parts, equipment, tools and other items.
Caterpillar said it is unable to predict the outcome or estimate any potential loss because of the recent timing of the subpoena.
However, Caterpillar currently believes "that this matter will not have a material adverse effect on the companys consolidated results of operations, financial position or liquidity," it said.
"We are cooperating with authorities on this matter and have no further comment at this time," a Caterpillar spokeswoman told AMM via e-mail.
The attorney generals office didnt respond to a request for additional details.