A federal judge approved Norfolk Southern’s $600 million class-action settlement offer, more than a year after the devastating East Palestine, Ohio derailment.
Judge Benita Pearson approved the class-action settlements and a 27% fee for attorneys, overruling all objections.
The $600 million, to be paid by Norfolk Southern, will compensate households and businesses within a 20-mile radius of the accident that submitted claims.
The lawsuit had roughly 55,000 claims filed, with just 370 households and 47 businesses opting out.
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A black plume rises over East Palestine, Ohio, as a result of the controlled detonation of a portion of the derailed Norfolk Southern trains Monday, Feb. 6, 2023. (AP Photo/Gene J. Puskar)
The only objections were from residents concerned that the settlement was rushed before individuals knew the extent of the potential health effects following the catastrophic Feb. 2023 train derailment.
“These attorneys were bullying people and telling them they were never going to get any money if they didn’t take this. People felt backed into a corner,” resident Jami Wallace said.
In August, a group of residents and attorneys unsuccessfully petitioned Judge Pearson for more time to evaluate the settlement, arguing that the long-term effects of the disaster remain to be seen.
An “East Palestine (EP) Strong” sign outside a business in East Palestine, Ohio, US, on Sunday, May 28, 2023. In the Ohio town where a Norfolk Southern train carrying hazardous chemicals derailed in February, recovery efforts are undercut by lingering uncertainty. (Nate Smallwood/Bloomberg via Getty Images)
As part of the settlement, any aid residents received from the railroad will be deducted from their final payments. Wallace and others who had to relocate for an extended period while the railroad paid for hotels or rental homes likely will not get anything.
The settlement allowed that anyone who lived within 2 miles of the derailment could get up to $70,000 per household for property damages, along with $25,000 per person for any health problems.
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The payments drop to as little as a few hundreds of dollars for those who live within 2 miles of the derailment location.
“This outcome would not have been possible without the resilience and support of the East Palestine community and the broader class of impacted residents and business owners,” the plaintiffs’ attorneys said in a statement. “We look forward to beginning the distribution of funds in the coming weeks to help this community rebuild and move forward.”
In this photo taken with a drone, portions of a Norfolk Southern freight train that derailed the previous night in East Palestine, Ohio, remain on fire at mid-day, Feb. 4, 2023. (AP Photo/Gene J. Puskar, File)
When the train derailed late on Feb. 3, 2023, tank cars full of hazardous chemicals ruptured and spilled their contents that caught fire just outside the small town on the Ohio-Pennsylvania border.
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Officials decided three days later to blow open five tank cars of vinyl chloride and burn the toxic plastic ingredient inside because they feared they would explode.
The Associated Press contributed to this report.
