A federal judge has approved Norfolk Southern's $600 million class-action settlement offer, more than a year after the devastating derailment in East Palestine, Ohio.
Judge Benita Pearson approved the class-action settlements and a 27% attorneys' fee, overriding all objections.
The $600 million Norfolk Southern will pay will compensate homes and businesses within a 20-mile radius of the accident that filed claims.
The lawsuit had approximately 55,000 claims filed, and only 370 households and 47 businesses opted 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 on Monday, February 6, 2023. (AP Photo/Gene J. Puskar)
The only objections came from residents concerned that the deal was rushed through before people knew the extent of the potential health effects following the catastrophic train derailment in February 2023.
“These lawyers were intimidating people and telling them they would never get money if they didn't go along with the project. People felt cornered,” said resident Jami Wallace.
In August, a group of residents and attorneys unsuccessfully asked Judge Pearson for more time to evaluate the settlement, arguing that the long-term effects of the disaster remain to be seen.
A sign reading “East Palestine (EP) Strong” is seen outside a business in East Palestine, Ohio, U.S., Sunday, May 28, 2023. In the Ohio town where a Norfolk Southern train carrying hazardous chemicals derailed in February, recovery efforts are being undermined 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 move for an extended period while the railroad paid for hotels or rental housing will likely receive nothing.
The settlement allowed anyone living within 2 miles of the derailment to recover up to $70,000 per household for property damage, along with $25,000 per person for any health issues.
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Payments are reduced to a few hundred dollars for those who live within two miles of the derailment site.
“This outcome would not have been possible without the resilience and support of the East Palestine community and the broader class of affected 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 drone photo, parts of a Norfolk Southern freight train that derailed the night before in East Palestine, Ohio, remain ablaze at midday on Feb. 4, 2023. (AP Photo/Gene J. Puskar, File)
When the train derailed late on Feb. 3, 2023, tanker cars filled with hazardous chemicals ruptured and spilled their contents, which caught fire on the outskirts of the small town on the Ohio-Pennsylvania border.
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Three days later, authorities decided to blow up five vinyl chloride tank cars and burn the toxic plastic ingredient inside because they feared they would explode.
The Associated Press contributed to this report.
