An Orange County Superior Court judge on Monday approved a $125 million settlement involving GKN Aerospace Transparency Systems Inc., the operator of a plastics manufacturing plant in Garden Grove. The settlement resolves claims stemming from a chemical leak at the facility that required thousands of residents and businesses to evacuate in May 2023.
According to the Orange County District Attorney’s Office, the approved settlement designates up to $100 million for approximately 50,000 residents who were displaced due to the hazardous materials incident. First responders who managed the emergency during Memorial Day weekend will receive reimbursement totaling $8,471,385.50 under the terms of the agreement.
In addition to the financial provisions, GKN Aerospace Transparency Systems Inc. has agreed to a seven-year period of operational monitoring. This oversight includes the involvement of an independent expert to verify the plant's adherence to applicable laws and regulations. The company will cover the cost of this monitoring, paying $1.4 million for the duration. The District Attorney’s Office is also set to receive $15 million in penalties, authorized under state law, which will be allocated for consumer protection enforcement efforts.
District Attorney Todd Spitzer noted that his office collaborated with outside chemical safety experts to analyze the incident and confirmed GKN's full cooperation throughout the investigation.
The hazardous materials emergency commenced on May 21 when a leak was detected at the GKN facility, located at 12122 Western Avenue in Garden Grove. The incident involved the cooling system of a 34,000-gallon chemical storage tank. Tens of thousands of residents across Garden Grove, the entire city of Stanton, and other nearby communities were compelled to evacuate their homes and businesses for several days over the Memorial Day weekend. Crews worked to neutralize a toxic chemical stored in overheated tanks, which had initially raised concerns about a potential explosion. Ultimately, the risk of an explosion was alleviated when a crack developed in the damaged tank, relieving the internal pressure.
Prior to the settlement, in July, Orange County had sent a letter to GKN Aerospace Transparency Systems Inc. demanding $4,071,305. This amount was sought as reimbursement for the resources expended by the county in its response to the chemical leak. The settlement now formally addresses these and other related costs and impacts. The monitoring period for the plant's operations will commence following the approval of this settlement.
