Progress Rail Services Corp. is being investigated by federal
authorities for alleged violations of environmental law and
improper business practices in California.
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.
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
generals office didnt respond to a request for