CHICAGO, December 4, 2025 — In a case with broad implications for California’s food-away-from-home industry, Panda Express Restaurant Group has been ordered to pay $1 million in penalties and fees for allegedly mishandling the carbon-dioxide tanks that carbonate the operator’s fountain drinks.
The payment will settle a civil lawsuit that involved 37 of California’s 58 counties. It alleged that Panda failed to train employees of its California restaurants to follow state-mandated safety procedures for handling the canisters. The instruction extends to learning how leaks from the tanks and lines that deliver the gas can be detected.
Nor did Panda provide proof as required under state regulations that the training had been conducted.
The directive to pay $1 million, technically known as a stipulated judgment, followed an investigation by 37 county-level attorneys general and two city attorneys. In announcing the payment, the plaintiffs noted that Panda had addressed several of its safety lapses that came to light as part of the investigation.
The lead plaintiff was Riverside County, which hosts about 30 of Panda’s restaurants. The chain owns and operates more than 500 units statewide.
In a stipulated judgment, one side agrees to accept the other’s recommended financial settlement in exchange for such considerations as an outward cap on the penalties. It is commonly used to facilitate divorce settlements.
The settlement was finalized on Nov. 20 but was not announced until this week. It calls for Panda to pay $881,925 in civil penalties, $100,000 to fund certain environmental projects of benefit to the state, and $75,000 in reimbursement costs.
As Managing Editor for IFMA The Food Away from Home Association, Romeo is responsible for generating the group's news and feature content. He brings more than 40 years of experience in covering restaurants to the position.