Settlement includes $100 million claims program for affected residents and businesses
GKN Aerospace has reached a $125 million settlement with California authorities over a May chemical incident at its Garden Grove facility, the company’s parent Melrose Industries said Tuesday. The Orange County district attorney’s office filed documentation this week to begin resolving the civil investigation, according to Melrose.
The agreement, contingent on court approval, includes a claims program of up to $100 million for eligible businesses and residents, plus $25 million in additional penalties and claims, Melrose said. The documentation also includes an operational safety plan and details of a claims program that was first set out in August.
The May incident forced the evacuation of parts of areas surrounding the Garden Grove facility as emergency services sought to avoid a chemical leak and vapor explosion at the plant, which manufactures equipment for the aviation industry.
If a court approves the settlement, claims are expected to open within days, Melrose said. The company also said the Orange County attorney’s office is not planning to file criminal charges in the case.
Separately, Melrose said it is engaged in ongoing mediation discussions regarding various pending civil class action lawsuits related to the incident.
The company said it expects a phased return to full operations at the GKN site during the current quarter.