Safeway Inc. agreed to pay nearly $ 10 million after a two - year investigation revealed that the Pleasanton - based company was improperly disposing of hazardous materials like medications and batteries as well as customers medical records , prosecutors said Monday . The $ 9.87 million settlement which closes a case built on surprise inspections of Safeway dumpsters in 2012 and 2013 was approved Friday by Alameda County Superior Court Judge Wynne Carvill . Safeway admitted no wrongdoing , but said it will beef up training to avoid future problems . The company was accused by several counties of violations at more than 500 stores and distribution centers it operated in California , including stores under the brand names Vons , Pavilions and Pak N Save , said Alameda County Assistant District Attorney Ken Mifsud , one of the lead attorneys in the case . Safeways disposal practices raised concern in 2012 , Mifsud said , when district attorneys from San Joaquin and Orange counties conducted an investigation into a different business and found that Safeway was illegally shipping hazardous materials back to its distribution centers . That in and of itself is illegal , he said . Hazardous waste needs to handled by licensed transporters , and it needs to be properly labeled . None of that was happening . Based on that discovery , Mifsud said , prosecutors began the waste inspections at stores across the state . Investigators found that , on top of shipping waste back to distribution centers , Safeway workers were tossing potentially hazardous materials into common dumpsters and disposing of medical records from pharmacies which contained patients names , phone numbers and addresses without shredding them , putting customers at risk of identity theft . Mifsud said he did not know what protocols the company had in place in the past to deal with disposal of sensitive customer information and hazardous materials . Before 2012 , there are years where its likely that large amounts of these materials were improperly disposed of , he said . Between 2012 and Fridays settlement , he said , district attorneys from across the state worked with Safeway to bring the company into compliance , creating procedures to ensure that materials are disposed of properly . Beyond the monetary civil penalties , the settlement also mandates that the company continue its First Assistant Store Manager Program , which addresses compliance at the store level , and conduct yearly store audits . If you take shortcuts that pollute our environment there will be consequences , said San Francisco District Attorney George Gasc_n . Judgments like these are a reminder to companies everywhere that we will vigorously pursue violations that threaten the environment . Safeway said Monday that it has strengthened policies to deal with disposal of hazardous materials like detergents , aerosol sprays , hair dye , antibacterial soaps and mascara . We have enhanced these programs and added new and supplementary training to ensure strict adherence to the law and to our policies , the company said . Safeway will continue to dedicate significant resources to these important programs . We are committed to helping to protect our environment . Safeway sold itself in March to private equity firm Cerberus Capital Management for more than $ 9 billion . Safeway is merging with Albertsons , and the two companies are divesting 168 stores in California and seven other states in order to satisfy Federal Trade Commission demands . ;