Nov 1 Federal prosecutors in California are
investigating a unit of Caterpillar Inc for potential
violations of environmental law and other alleged improper
business practices, the company disclosed in a regulatory filing
Peoria, Illinois-based Caterpillar said in the filing that
its Progress Rail Services Corp subsidiary received a grand jury
subpoena on Oct. 24 from the U.S. District Court for the Central
District of California. The U.S. attorney's office in that
district told Progress Rail it is a target of a criminal
investigation related to the subpoena, the filing said.
The subpoena requested documents and other information from
Progress Rail, Caterpillar and Progress Rail subsidiary United
Industries Corp in connection with allegations that Progress
Rail conducted unnecessary or improper rail car inspections and
that it failed to properly dispose of equipment, parts, tools
and other items, the filing said.
Caterpillar said it was cooperating with authorities,
according to the filing.
A spokesman for the company and the U.S. attorney's office
did not immediately return a request for comment Friday evening.