Orange County District Attorney Todd Spitzer has reached a $125 million settlement with GKN Aerospace, following a chemical crisis at the company's Garden Grove facility in May that led to the evacuation of nearly 50,000 residents.
The settlement, which has been submitted to an Orange County Superior Court judge for approval or modification, encompasses several key components. According to a news release from the District Attorney's Office, it includes a previously agreed-upon $100 million claims program for evacuees, $15 million in civil penalties, and $8.47 million designated to reimburse emergency response and abatement costs. The agreement also features a "robust safety plan" and a multi-year monitoring program.
The crisis unfolded nearly half a year ago when a chemical tank containing methyl methacrylate became compromised, posing a risk of a "catastrophic explosion," Orange County Fire Authority officials stated at the time. This emergency prompted evacuation orders for tens of thousands of residents across Garden Grove and five surrounding communities, with residents unable to return home for nearly a week.
The DA's Office noted that the stipulated agreement marks an important milestone in efforts to recoup millions of dollars in taxpayer funds spent responding to the Memorial Day weekend hazmat incident. It also ensures full repayment of $500,000 in discretionary funds that Orange County First District Supervisor Janet Nguyen expanded to aid those affected by the emergency.
Spitzer's office confirmed that the cities of Garden Grove, Cypress, Stanton, Westminster, and Anaheim were included in the emergency. Local agencies such as OCFA, the U.S. Environmental Protection Agency, and the South Coast Air Quality Management District were called upon to assist with the incident.
Regarding the claims program, Spitzer indicated it is designed for the more than 50,000 residents who were forced to evacuate their homes for five days. This program will be administered by an independent third-party, unaffiliated with GKN, allowing evacuated residents and business owners to be reimbursed for expenses. These expenses include hotel stays, loss of use, per diem compensation for meals, transportation, and loss of wages.
Additionally, the robust safety plan will involve seven years of injunction monitoring, according to the DA's Office. This plan mandates an outside expert to maintain oversight of GKN's operations, ensuring that all applicable laws and regulations are followed. The $1.4 million cost for this monitoring will be covered by GKN, Spitzer said.
Prior to negotiating the civil disposition, Spitzer had closed a criminal investigation into GKN, which he launched as the incident initially unfolded in May. The probe found no criminal wrongdoing, at which point Spitzer shifted focus to a civil resolution with GKN and announced the claims program. Spitzer maintained that GKN was fully cooperative with their investigation.
While the DA's investigation has concluded, the cause behind a team of FBI investigators swarming the property in June to conduct a search warrant has not been publicly disclosed.
Last month, community members and city leaders had publicly demanded accountability and full transparency from GKN officials before the company returned to full operation for the first time since the May incident.
Following the announcement of the settlement on Monday, GKN stated that it would host a community event on October 27, where residents can interact with officials and learn more about the claims program.
