A federal judge has sanctioned a $600 million class-action settlement for the East Palestine, Ohio train derailment disaster.
At a Glance
- A federal judge approved a $600 million settlement from Norfolk Southern for affected residents.
- Judge Benita Pearson’s approval came amid overwhelming support from residents.
- Approximately 55,000 claims were filed, with minimal opt-outs.
- Objectors questioned the settlement’s adequacy and transparency.
- First payments are expected before the year’s end.
Settlement Details and Community Impact
A federal judge has approved a $600 million class-action settlement from Norfolk Southern railroad for residents within 20 miles of the East Palestine, Ohio train derailment. This decision follows a hearing in which it was noted that community members overwhelmingly supported the settlement, with Judge Benita Pearson giving her final approval. Approximately 55,000 claims were filed, with only 370 households and 47 businesses opting out.
The derailment on February 3, 2023, involved hazardous chemicals, leading to a controlled burn of vinyl chloride to prevent explosions. Residents within two miles of the derailment can expect up to $70,000 per household for property damage and up to $25,000 per person for health issues, with payments decreasing with distance. Norfolk Southern has also provided over $108 million in assistance and spent more than $1 billion on cleanup operations.
Some objectors argued that the settlement was insufficient and rushed. They raised concerns about undisclosed health risks and test results. The Environmental Protection Agency (EPA) stated there is no ongoing threat, but residents have reported skin conditions and other health issues. Norfolk Southern reiterated its commitment to the community and ongoing recovery efforts. The National Transportation Safety Board (NTSB) attributed the crash to an overheated wheel bearing detected too late.
Ohio judge approves $600 million settlement for residents near fiery East Palestine train derailment https://t.co/862zFac8jN
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Resident Concerns and Health Risks
While the settlement aims to bring closure and relief, some residents and community leaders remain skeptical. Jami Wallace, president of the Unity Council for East Palestine, strongly opposed the settlement in court, expressing concerns about long-term health effects and feeling pressured into accepting the deal. Other residents, like Carley Tunno and Ashley McCollum, reported health issues and deaths they attribute to the 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.
Experts like Stephen Petty, Dr. George Thompson, and Scott Smith have provided findings that contradict the EPA’s statements on the derailment’s health impacts, suggesting the presence of harmful chemicals post-derailment. Norfolk Southern has also settled with the Biden administration for $310 million, including $235 million for cleanup and $15 million for Clean Water Act violations.
Next Steps for Recovery
The plaintiffs’ attorneys praised the resilience of the East Palestine community and anticipated the fund distribution to begin soon. “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. We look forward to beginning the distribution of funds in the coming weeks to help this community rebuild and move forward,” they stated.
The judge’s approval marks a significant step toward justice and rebuilding for the impacted community. Norfolk Southern reaffirmed its dedication to support and recovery efforts, emphasizing a long-term commitment to East Palestine. The funds will provide much-needed financial relief and aid in the community’s efforts to reconstruct and heal.
