Ohio Judge Approves $600 Million Settlement for Residents Near East Palestine Train Derailment

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 approved the class action settlements and the 27 percent attorneys' fees, overruling all objections.

The $600 million, which will be paid by Norfolk Southern, will be used to compensate households and businesses within a 20-mile radius of the crash that have filed claims.

About 55,000 claims were filed in the lawsuit, but only 370 households and 47 businesses opted out.

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A black plume rises over East Palestine, Ohio, following the controlled detonation of part of the derailed Norfolk Southern trains, Monday, Feb. 6, 2023. (AP Photo/Gene J. Puskar)

The only objections came from residents concerned that the regulation was rushed through before people knew the extent of the potential health impacts from the catastrophic train derailment in February 2023.

“These lawyers were intimidating people and telling them they would never get any money if they didn’t accept this service. People felt cornered,” said resident Jami Wallace.

In August, a group of residents and lawyers unsuccessfully asked 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, U.S., on Sunday, May 28, 2023. In the Ohio town where a Norfolk Southern train carrying hazardous chemicals derailed in February, recovery efforts are being hampered by lingering uncertainty. (Nate Smallwood/Bloomberg via Getty Images)

Under the agreement, any assistance residents receive 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 homes likely won't receive anything.

The settlement provided that anyone living within 3 km of the derailment could get up to $70,000 per household for property damage, as well as $25,000 per person for any health issues.

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Payments can be reduced to just a few hundred dollars for those who live within 2 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 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 drone photo, parts of a Norfolk Southern freight train that derailed the night before in East Palestine, Ohio, remain ablaze at midday, 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 just outside the small town on the Ohio-Pennsylvania border.

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Three days later, authorities decided to blow up five tanker cars of vinyl chloride and burn the toxic plastic they contained, fearing they would explode.

The Associated Press contributed to this report.