- Caterpillar (CAT) files its 10-Q.
- On page 29, the company says its Progress Rail subsidiary "received a grand jury subpoena from the U.S. District Court for the Central District of California" on October 24.
- The subpoena is for documents "relating to allegations that Progress Rail conducted improper or unnecessary railcar inspections and repairs and improperly disposed of parts, equipment, tools, and other items."
- The 10-Q also says Progress Rail "was informed by the U.S. Attorney for the Central District of California that it is a target of a criminal investigation into potential violations of environmental laws and alleged improper business practices."
- The company is cooperating with authorities, and while CAT notes that "the recent timing of the subpoena" makes it impossible to predict the outcome, the company does not at this time expect a material adverse effect on operating results or financial position.
Caterpillar 10-Q shows investigation into subsidiary
Nov 1 2013, 16:45 ET