Leinbach, Germany-based parts maker Kukje has been sued for selling dangerous machinery parts.
The parts are used in machines that have exploded, or caused a fire.
The case comes as part of a larger investigation into the possible safety of parts used in the machines used to build them.
It also follows an explosion at a Kukjo factory in April that killed three people and injured more than 200.
The German company said it would pay the injured and the families of those killed to settle the case.
Kukjeg makes parts for cars, tractors, forklifts, power tools, tracting equipment, and industrial machinery.
In a statement, Kukja said it was cooperating with the authorities and would cooperate with investigations into the accident.
KUKJA said that the company had worked with the National Police Agency, as well as the police, the prosecutor’s office, and the Federal Office for the Protection of the Constitution, in a comprehensive investigation into these events.
It said it is cooperating with relevant authorities to help the investigation.
The National Police Authority (NPA) said it has opened a criminal investigation into this incident.
It has launched a criminal probe into the manufacture and sale of dangerous parts.
Kukujeg has been owned by a Dutch company since 2005.
The company has been fined several times for failing to ensure safety for parts that had exploded, and it had been under investigation by German authorities for its alleged role in the deaths of more than 100 people in factories in the German state of North Rhine-Westphalia.
The Kukuje factory was owned by the German company Kukji.
A statement from the NPA said that while it was investigating the cause of the explosion, it received information that the parts were being sold illegally in Germany.
The NPA is looking into the circumstances surrounding the accident and the possibility of criminal negligence.