Rockwell Shareholder Sues, Alleging Mismanagement
A shareholder of Rockwell International Corp. sued directors Tuesday, alleging that they recklessly disregarded environmental laws at the company’s beleaguered Santa Susana field laboratory, thus exposing the company to potential damages in the millions of dollars.
The lawsuit, which seeks an unspecified amount of money from all 13 directors, asserts that they grossly mismanaged the company by allowing it to “engage in criminal conduct” at its Rocketdyne division facility in Santa Susana.
The FBI and other government agencies are investigating Rocketdyne’s handling of toxic waste. Nuclear research was halted at the facility in 1989 after the company disclosed that the site had “low-level contamination from past nuclear projects,” the suit states.
Executives at Rockwell’s Seal Beach headquarters could not be reached for comment late Tuesday. Donald R. Beall, the company’s chairman and chief executive, is among those named in the suit.
The lawsuit, known as a derivative action, was filed by New York resident Harry Lewis on behalf of himself and the corporation. Shareholder derivative actions seek to recover damages from defendants on behalf of corporations.
Filed in Orange County Superior Court by a San Francisco law firm, the suit adds to the litigation and the public outcry over environmental and safety concerns at the 48-year-old Rocketdyne lab.
In 1994, two Rocketdyne scientists were killed while allegedly disposing of toxic rocket fuel by blowing it up. Agents from seven federal agencies seized Rocketdyne files last July in an investigation over whether the company has for years illegally disposed of toxic waste.
Survivors of the two scientists have filed lawsuits, including one that seeks $100 million.
In addition, radioactive waste has been found in the Simi Valley neighborhood, and one resident sued for $55 million after being diagnosed with thyroid cancer. She contends that she was exposed to radiation while playing in the fields and drinking water near the facility.
Rockwell paid $650,000 in 1992 to settle a state hazardous waste lawsuit involving several locations, including the 2,700-acre Santa Susana site.
Last month, the Brandeis-Bardin Institute, which runs children’s summer camps near the lab, sued, claiming that toxic waste has lowered its property value.
