A federal judge has approved Norfolk Southern’s $600 million class-action settlement offer more than a year after the devastating train derailment in East Palestine, Ohio. Judge Benita Pearson overruled all objections and approved a 27% fee for attorneys involved in the case.
The settlement, to be paid by Norfolk Southern, will compensate households and businesses within a 20-mile radius of the accident that submitted claims. Approximately 55,000 claims were filed, with only 370 households and 47 businesses opting out of the settlement.
Residents expressed concerns that the settlement was rushed before the full extent of potential health effects from the derailment could be known. Some residents felt pressured by attorneys to accept the settlement without fully understanding the long-term consequences.
As part of the settlement, any aid residents received from the railroad will be deducted from their final payments. Those who had to relocate for an extended period while the railroad paid for accommodations may not receive any additional compensation.
The settlement offers up to $70,000 per household for property damages and $25,000 per person for health problems for those living within 2 miles of the derailment. However, payments decrease significantly for those living closer to the accident site.
The plaintiffs’ attorneys expressed gratitude to the East Palestine community for their support throughout the legal process and stated that they look forward to distributing the funds to help the community rebuild and move forward.
The train derailment occurred on February 3, 2023, when tank cars carrying hazardous chemicals ruptured and caught fire just outside the small town on the Ohio-Pennsylvania border. Three days later, officials decided to detonate five tank cars of vinyl chloride to prevent a potential explosion.
The settlement marks a significant step towards closure for the impacted residents and businesses in East Palestine. The distribution of funds is expected to begin in the coming weeks to aid in the community’s recovery.
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