GKN Aerospace Agrees to $125 Million Settlement Over Garden Grove Chemical Leak

GKN Aerospace has agreed to a $125 million settlement with Orange County following a chemical leak at its Garden Grove plastics manufacturing plant that prompted a large-scale evacuation. Orange County District Attorney Todd Spitzer announced the settlement on Tuesday, stating it requires approval from an Orange County Superior Court judge.

Up to $100 million of the settlement is designated for approximately 50,000 residents who were displaced from their homes and businesses due to the hazardous materials emergency. First responders who managed the incident will be reimbursed $8,471,385.50 for their efforts.

The agreement also mandates seven years of monitoring by an independent expert to ensure GKN Aerospace complies with environmental laws and regulations, at a cost of $1.4 million to the company. Additionally, the District Attorney’s Office will receive $15 million in penalties under state law, to be allocated for consumer protection enforcement.

The hazardous materials emergency began on May 21 when a leak was detected at the GKN Aerospace Transparency Systems Inc. plant, located at 12122 Western Ave. The leak originated from the cooling system of a 34,000-gallon chemical storage tank. Tens of thousands of residents in Garden Grove, Stanton, and surrounding communities were forced to evacuate over the Memorial Day weekend as authorities worked to neutralize the toxic chemical and mitigate fears of a potential explosion. The pressure inside the tank eventually relieved through a crack, averting an explosion risk.

In July, Orange County had previously sought reimbursement of $4,071,305 for resources used in responding to the leak. Spitzer’s office indicated that GKN fully cooperated with the investigation, which involved analysis by outside chemical safety experts to determine the cause of the incident.