Item 1. Legal Proceedings
Item 1. Legal Proceedings
We are from time to time subject to various claims and lawsuits incidental to our business. In the opinion of management, currently outstanding claims and suits will not, individually or in the aggregate, have a material adverse effect on our financial position, results of operations or cash flows. The legal proceeding below is an update from our legal proceedings previously disclosed in our 2021 Form 10-K and report on Form 10-Q for the quarter ended June 30, 2022:
On August 18, 2022, our Specialty segment agreed to pay the U.S. Environmental Protection Agency ("EPA") $2.5 million as part of a settlement to resolve a long-standing dispute relating to certain aftermarket parts sold by the Company that the EPA alleged violated the Clean Air Act.
With respect to the July 7, 2022 penalty demand from Region 4 of the EPA discussed in our report on Form 10-Q for the quarter ended June 30, 2022, we reached a settlement to pay a penalty in the amount of $465,000 in connection with alleged violations of federal stormwater regulations. We will be required to pay this amount within 30 days of the EPA executing Consent Agreement and Final Orders for each facility. On August 18, 2022, we received a Notice of Violation from Region 10 of the EPA regarding alleged violations of federal stormwater regulations at facilities in Idaho, Oregon, and Washington to which we timely responded. We have not received any response from the EPA. We do not currently anticipate that any expense or liability that we may incur as a result of these matters in the future will be material to the Company’s business or financial condition.
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