GKN Aerospace has agreed to an up-to-$100 million claims program aimed at the 50,000-plus residents of Garden Grove and surrounding cities who were forced to evacuate over Memorial Day weekend when a failing toxic-chemical tank threatened to explode, the Orange County District Attorney’s Office announced on Monday, Aug. 24.
The announcement marks the end of a criminal investigation into GKN that was launched by District Attorney Todd Spitzer in the midst of the chemical scare, and ultimately did not lead to actual criminal charges.
But it isn’t the end of discussions between GKN and local prosecutors over how to address the full impact of the widespread evacuations and the lingering safety concerns.
The two sides are still discussing a comprehensive safety plan that likely would include independent monitoring of the Garden Grove facility. And prosecutors said they are also negotiating potential additional financial reimbursements for expenses incurred by first responders and emergency-services agencies that took part in the massive hazardous-material situation.
For the past few months, investigators conducted onsite inspections, reviews of plant records, and consultations with experts, according to the District Attorney’s Office. Following those efforts, prosecutors opted to pursue a civil agreement with GKN Aerospace rather than a criminal case.
The details of the claims program — including how residents and businesses can apply — have yet to be determined. More information is expected to be released in the coming weeks, officials said.
The program is expected to be administered by an unspecified third party not affiliated with GKN. But prosecutors said the program is meant to address the costs incurred for hotel stays, meals, transportation or lost wages.
“I promised the residents of Orange County that I would do everything in my power to make the tens of thousands of residents who were forced from their homes due to this emergency whole,” DA Todd Spitzer said in a statement. “The community has an absolute expectation that businesses operating within their neighborhoods operate safely and lawfully, and I am pleased that GKN has been and continues to be responsive to any and all requests throughout this investigation.”
GKN officials, in a company statement, wrote that the announcement of the claims program represented “a significant step toward full resolution” of the DA’s now-civil investigation.
“This facility has been part of Garden Grove for 60 years, and the claims program we’re announcing today reflects how seriously we take our responsibility to our neighbors,” GKN Senior Vice President Steve Carlin said in the statement. “From the outset, GKN has pledged to make things right, and we appreciate the community’s patience as we worked closely with local officials to finalize the best path forward.”
Much Needed Relief
Spitzer indicated that he supports GKN’s plan to resume manufacturing operations at the Garden Grove facility, potentially on Sept. 28, “contingent upon full compliance with required safety standards, ongoing monitoring protocols, any regulatory obligations and a court-approved safety plan.” Spitzer described the aerospace and defense company as performing “a critical role in manufacturing cockpits for military aircraft” and said it has “fully cooperated” with the DA investigations.
“This emergency showcased the best that Orange County has to offer in crisis management and it is through the leadership of the Orange County Fire Authority, the Garden Grove Police Department, and Supervisor Janet Nguyen who all worked tirelessly to protect lives that we are at a point now where we can focus on compensating all of those affected and look to the future of safe operations,” Spitzer added.
Supervisor Nguyen, in her own statement, indicated she was “excited to learn of GKN’s $100-million fund to help residents and businesses of the hazmat crisis in Garden Grove … I’m glad that GKN is stepping up and providing this much needed relief.”
She added: “They have been part of the community for decades and employ a large local workforce with good paying jobs. All along, I have said my goal is to make the community whole. I urge everyone who lost money to apply for this relief.”
Some neighbors directly impacted by the evacuations also praised news of the claims program.
“This is good news,” Josefina Peralta said.
Peralta, 54, a Stanton resident of more than 20 years, lives on Santa Rosalia Street in a quiet neighborhood situated across railroad tracks from the GKN Aerospace facility.
Peralta, her husband and three children evacuated from their home and spent several nights sleeping in a nearby hotel and, to save money, in the family car as emergency crews worked to neutralize the failing tank.
And in early June, as officials announced an initial methyl methacrylate cleanup attempt at the aerospace plant, Peralta and her family left their home to stay in a hotel again.
“It was a lot of money, you know,” Peralta said. “Three meals for five people. Staying in the hotel, eating, buying clothes, buying everything. It’s a lot.”
Peralta said she’d attempted in June to get financial assistance from the OC Community Resilience Fund but “they never got back to me.”
Recouping Costs
GKN Aerospace donated $3 million to the OC Community Resilience Fund, a partnership of Orange County United Way and 211-OC, which provided qualifying residents with up to $500 in cash assistance to help recoup evacuation costs. GKN’s contribution helped approximately 6,000 residents in the evacuation zone, OC United Way officials said.
Cities are also looking for avenues to recoup costs. Stanton and Westminster were recently denied state funding to help cover up to 75% of costs related to the chemical incident, including for overtime accrued by emergency response personnel, and materials, equipment and supplies expended.
A GKN representative declined to comment on whether the company plans to reimburse cities for their costs.
On May 21, a storage tank containing methyl methacrylate — a toxic chemical used in acrylic-plastics manufacturing — began venting vapors. Worried that the tank could either rupture and spill chemicals or potentially explode, authorities triggered the widespread evacuations.
The five-day evacuation impacted an estimated 13,000 to 17,000 households.
Ultimately, a crack in the tank served to relieve pressure and reduce the threat of an expansive explosion, helping authorities bring the situation under control.
Following the evacuations, many residents have called for the shutdown or relocation of the 15-acre GKN Aerospace facility. Garden Grove leaders have expressed frustration over their discussions with GKN, but have indicated that methyl methacrylate — the volatile chemical that caused the fears of an explosion — won’t be stored at the facility again until the first quarter of next year at the earliest.
Dozens of lawsuits, in both state and federal courts, have been filed against GKN in connection to the evacuations. Neither the claims program nor a larger civil settlement with the OC DA’s office would directly impact those lawsuits. But it wasn’t clear if those who take part in the claims program would be required to waive their right to pursue a lawsuit.
Agreements with local prosecutors would also not impact any potential federal investigations.
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A pealing pressurized tank that was made for methyl methacrylate at GKN Aerospace in Garden Grove on Monday, August 24, 2026. The Orange County District Attorney’s Office negotiated a claims program of up to $100 million for the more than 50,000 Orange County residents forced to evacuate the area surrounding GKN Aerospace Transparency Systems in May as the chemical tank threatened to explode. (Photo by Jeff Gritchen, Orange County Register/SCNG)
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A pealing pressurized tank that was made for methyl methacrylate at GKN Aerospace in Garden Grove on Monday, August 24, 2026. The Orange County District Attorney’s Office negotiated a claims program of up to $100 million for the more than 50,000 Orange County residents forced to evacuate the area surrounding GKN Aerospace Transparency Systems in May as the chemical tank threatened to explode. (Photo by Jeff Gritchen, Orange County Register/SCNG)
The FBI and the Environmental Protection Agency carried out a search of the Garden Grove GKN facility in early June. Officials at the U.S. Attorney’s Office said they could neither confirm nor deny whether a federal investigation into GKN is ongoing.
GKN previously paid a nearly $1 million settlement related to numerous environmental violations at the Garden Grove facility. A history of spills, leakages and violations at the facility prompted city officials in 2023 to order the company to improve the “general housekeeping.”
Orange County leaders in mid-July requested $4 million from GKN in reimbursement costs related to the massive hazmat response. They cited $3.5 million in recoverable costs, the bulk of which was incurred by the Orange County Sheriff’s Department.
“The County has received no compensation from GKN for the costs incurred in responding to the Garden Grove incident. GKN has not responded to the County’s demand letter,” county spokesperson Molly Nicholson said Monday.