A proposed $75 million class action settlement could provide payments to current and certain former owners of homes in mapped portions of Canoga Park and Winnetka, California, over alleged soil and groundwater contamination.

The lawsuit alleges that Northrop Grumman Corporation and Northrop Grumman Systems Corporation are responsible for contamination tied to industrial operations in the late 1960s and early 1970s. The companies deny the allegations, dispute that homes suffered contamination or lost value, and do not admit wrongdoing. The court has not decided which side is right.

Which properties may qualify

The settlement generally covers current owners of single-family homes or townhomes in the official Class Area as of the August 11, 2026 notice date. It also includes people who owned an eligible property on July 1, 2024 and sold it before the notice date. Employees of the defendants are excluded.

Eligibility depends on the official map and address list, not simply a Canoga Park or Winnetka mailing address. The settlement website divides the Class Area into Sub-Areas A, B, and C because the proposed payment allocation differs by location.

The plaintiffs allege that trichloroethylene, known as TCE, perchloroethylene, known as PCE, and other contaminants entered soil and groundwater from predecessor operations near 8020 Deering Avenue. They assert claims involving negligence, nuisance, trespass, reduced property values, and the possible need for vapor-intrusion mitigation. The defendants deny responsibility and say cleanup efforts have been effective.

Estimated payments by sub-area

The defendants agreed to create a non-reversionary $75 million fund, meaning unused money would not return to them. The fund would pay valid claims, settlement administration, court-approved attorneys' fees and costs, and service awards.

Class counsel estimates that current owners could receive approximately $21,110 per eligible home in Sub-Area A, $16,037 in Sub-Area B, or $7,494 in Sub-Area C. Eligible former owners who sold after July 1, 2024 are estimated to receive about $444 from a separate $100,000 pool.

Those figures are estimates, not guaranteed awards. Actual payments could be higher or lower depending on approved deductions and the number of valid claims. Generally, there would be one payment per home regardless of how many people own it. Co-owners would be responsible for dividing the payment. When a home was sold after July 1, 2024, both the former owner and current owner may be able to claim from their respective allocations.

A claim and ownership proof are required

To seek payment, a class member must submit a Claim Form with proof of ownership. Online claims must be received, or mailed claims postmarked, by October 10, 2026.

The notice warns that forms submitted through a third-party claims aggregator are not valid. Claims must go directly to the settlement administrator through the official website or mailing address. Owners should carefully check the official address list and determine their assigned sub-area before estimating a possible payment.

The deadline to exclude yourself or object is September 25, 2026. Remaining in the class generally releases property-damage and mitigation claims covered by the settlement, whether or not a claim is filed.

Certain health-related claims are preserved

The proposed release does not cover claims for alleged personal injury, wrongful death, or medical monitoring. That distinction may matter to residents concerned about health effects rather than only property value or mitigation costs.

The court scheduled a final approval hearing for November 12, 2026 at 10 a.m. Pacific Time in Los Angeles. If approval becomes final, the administrator would work to issue payments, but appeals could delay distribution. Initial checks would remain valid for 180 days.

Where owners can check their address

Current and former property owners can review the linked ClassActionTracker settlement page for a concise eligibility and deadline summary. The official notice and settlement website contain the controlling Class Area map, address list, Claim Form, proof requirements, sub-area assignments, and release language. Those official documents should be used to confirm whether a particular home is included.