MADISON, Wis. (AP) -- A federal judge has approved a $4.6 million settlement of an environmental lawsuit against a Madison manufacturer by a group of its neighbors.

U.S. District Judge Barbara Crabb approved the settlement Monday against Madison-Kipp.

Under the settlement reached in July, the 32 homes will receive money and pollution control equipment. Madison-Kipp will replace the top one foot of soil from their yards with clean fill.

The Wisconsin Journal Sentinel ( ) reports the settlement is similar to one for $2.6 million that involves 52 other neighboring homes that was approved last month in Dane County.

In both cases, neighbors alleged contamination from the plant lowered property values.

Madison-Kipp denies the allegations. A state environmental lawsuit is still pending.

The company makes machined components for transportation, industrial and lawn and garden customers.