Madison Kipp Corp. reaches settlement with neighborhood groups

Madison-Kipp Corp. reached a settlement with two groups of neighbors that filed separate class-action lawsuits claiming the company failed for years to adequately investigate and clean up contaminants — including some known human carcinogens — that poisoned groundwater beneath neighborhood homes.

The parties agreed to a proposed cash settlement totaling $7.2 million. As part of that, a $2.6 million state court settlement applies to 52 homes around the Madison Kipp location in east Madison. Those homeowners could receive about $32,000 each.

A separate lawsuit, filed in federal court, involved a group of 33 different neighborhood homes and resulted in a proposed $4.6 million settlement. That payout could amount to roughly $82,000 per home. The proposed settlements still need to be approved. Kipp continues to deny the allegations but reportedly wanted to reach a mutually agreeable solution.

The Madison vehicle parts manufacturer also agreed to continue its investigation and remediate environmental concerns as a part of the agreements.