More than a year after the devastating derailment in East Palestine, Ohio, a federal judge has approved Norfolk Southern Railroad's proposed $600 million class-action settlement.
Judge Benita Pearson overruled all objections and approved the class action settlement and 27% attorneys' fees.
The $600 million being paid by Norfolk Southern Railway will be paid to households and businesses that filed claims within a 20-mile radius of the accident site.
About 55,000 claims were filed in the lawsuit, but 370 households and 47 businesses had their claims dismissed.
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A controlled explosion of part of a derailed Norfolk Southern Railroad train sent black smoke billowing into the sky above East Palestine, Ohio, on Monday, Feb. 6, 2023. (AP Photo/Jean J. Puskar)
The only opposition came from residents concerned the settlement was rushed before people knew the extent of the potential health risks from the February 2023 train derailment.
“The lawyers threatened residents, telling them they wouldn't get any money unless they met their demands. Residents felt cornered,” resident Jamie Wallace said.
In August, a group of residents and lawyers petitioned Judge Pearson for more time to evaluate the settlement, arguing that the long-term effects of the disaster were still unknown, but their request was denied.
A sign reading “East Palestine (EP) Strong” hangs outside a store in East Palestine, Ohio, U.S., Sunday, May 28, 2023. Lingering uncertainty is hampering recovery efforts in the Ohio town where a Norfolk Southern Railroad train loaded with hazardous chemicals derailed in February. (Nate Smallwood/Bloomberg via Getty Images)
As part of the settlement, any assistance residents received from the railroad will be deducted from their final payout. Wallace and others, who were forced to relocate for long periods while the railroad paid for their hotel and rental housing, will likely get nothing.
The settlement means that people living within two miles of the derailment can receive up to $70,000 per household for property damage and $25,000 per person for health issues.
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For people who live within two miles of the derailment, the payout will be reduced to a few hundred dollars.
“This outcome would not have been possible without the resilience and support of the East Palestinian community and the broad base of affected residents and business owners,” the plaintiffs' lawyers said in a statement. “We look forward to beginning to distribute funds in the coming weeks to help the area rebuild and move forward.”
In this photo taken by a drone, part of a Norfolk Southern Railroad freight train that derailed the previous night in East Palestine, Ohio, is still burning as of noon on February 4, 2023. (AP Photo/Jean J. Puskar, File)
When a train derailed in the middle of the night on February 3, 2023, a tank car full of dangerous chemicals ruptured, spilling its contents and starting a fire just outside a small town on the Ohio-Pennsylvania border.
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Three days later, authorities decided to blow up five tank cars loaded with PVC to incinerate the toxic plastic content inside due to fears of explosion.
The Associated Press contributed to this report.
