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Rockwell Directors Sued by Shareholder

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TIMES STAFF WRITERS

A shareholder of Rockwell International Corp. sued directors Tuesday over allegations that they recklessly disregarded environmental laws at the company’s beleaguered Santa Susana Field Laboratory, thus exposing the company to millions of dollars in potential damages.

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, which is south of Simi Valley.

FBI agents and other government agencies are investigating Rocketdyne’s handling of toxic wastes at the lab. Nuclear research was halted at the facility in 1989 after the company disclosed the site had “low-level contamination from past nuclear projects,” the suit states.

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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, was among those named in the suit.

The lawsuit, known as a derivative action, was filed by New York state 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 lawsuit adds to the litigation and public outcry over environmental and safety concerns at the 48-year-old Rocketdyne lab.

In 1994, two Rocketdyne scientists were killed, and there have been allegations they were trying to get rid 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.

Also, radioactive waste has been found in a Simi Valley neighborhood, and one resident sued for $55 million after having thyroid cancer diagnosed. She contends she was exposed to radiation while playing in the fields and drinking water near the facility.

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Rockwell paid $650,000 in 1992 to settle a state hazardous waste lawsuit involving several sites, including the 2,700-acre Santa Susana property.

Last month, the Brandeis-Bardin Institute, which runs children’s summer camps near the Rocketdyne lab, sued over allegations that contamination from the company’s toxic waste has lowered its property value.

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