Panda Express Restaurant Group, Inc., Ordered to Pay Over $1 Million for Hazardous Materials Business Plan Violations

News Release 4-15-2024

December 2, 2025

RIVERSIDE – District Attorney Mike Hestrin joined with District Attorneys from 37 other counties and two City Attorney’s to announce that a Stipulated Judgment was filed on Nov. 20, in The People v. Panda Express Restaurant Group, Inc., CVRI2504861, to resolve violations of California’s Hazardous Materials Business Plan laws. Panda Express was ordered to pay over $1 million dollars consisting of civil penalties, supplemental environmental projects, and costs.

The judgment in this civil lawsuit was filed in Riverside County Superior Court and is the result of an investigation into the unlawful handling of hazardous materials, specifically carbon dioxide by Panda Express at its 500-plus California restaurant locations including over 30 restaurant locations in Riverside County.

Panda Express restaurants use carbon dioxide for their carbonated fountain beverage systems. Carbon dioxide is typically stored in tanks on-site and is widely used by restaurants. Carbon dioxide is safe if handled properly. If not handled properly, carbon dioxide can leak unnoticed, displacing oxygen from the air, which can result in serious health effects or even death. In most jurisdictions, California businesses that use carbon dioxide are required by law to train employees on safe handling practices and how to detect leaks from tanks and supply lines. These businesses must file certified, complete, and accurate reports with local regulators confirming such training.

This lawsuit alleges that instead of properly training restaurant personnel in carbon dioxide handling at Panda Express restaurant locations, Panda Express employees were not receiving the required training in the safe handling of carbon dioxide. Additionally, the settlement resolves failure to accurately and completely disclose employee training information as required by California laws designed to ensure the safety of first responders, employees, and customers. This settlement was reached after Panda Express took steps to come into compliance with California law by properly training Panda Express employees and updating and reporting training records.

Under the settlement, Panda Express will be ordered to pay $881,925 in civil penalties, $100,000 in supplemental environmental projects, and $75,000 in cost reimbursement. The settlement also imposes injunctive terms, which will require Panda Express to comply with Chapter 6.95 of the California Health and Safety Code at its restaurants throughout California during the next five years.

Along with the Riverside County DA’s Office, other DA’s Offices involved in the investigation include Marin, San Francisco, San Joaquin, and Solano. 

This case was handled in Riverside County by Deputy District Attorney Lauren R. Martineau of the DA’s Environmental Protection Team.