Panda Express Settles Hazardous Materials Lawsuit for $1.056 Million

Panda Express Restaurant Group Inc. has agreed to a $1.056 million settlement following a lawsuit led by the Riverside County District Attorney’s Office over the alleged mishandling of hazardous materials at its California restaurant locations. The settlement — which includes civil penalties, reimbursements, and mandated corrective actions — was finalized on Nov. 20 after roughly three months of litigation in Riverside County.

The lawsuit involved district attorney’s offices from 38 counties, with investigators from Riverside, Marin, San Joaquin, and Solano counties playing a central role.

According to prosecutors, the case focused on the improper handling of carbon dioxide, which is used in Panda Express’ carbonated beverage systems and stored in on-site tanks at more than 500 California locations, including over 30 restaurants in Riverside County. While carbon dioxide is safe when stored and managed correctly, the D.A.’s office alleged that employees had not been adequately trained in its handling.

Panda Express has not yet issued a public comment on the settlement.

Under the judgment, Panda Express will pay:

• $881,925 in civil penalties

• $100,000 toward supplemental environmental projects

• $75,000 to reimburse investigative and legal costs

Riverside County will receive $273,980 of the total payout.