$600 Million Class Action Settlement: Norfolk Southern has announced a settlement agreement regarding a class action lawsuit stemming from the hazardous train derailment that occurred just across the Pennsylvania border in East Palestine, Ohio. According to the company’s news release, the settlement amounts to $600 million. This consolidated class action encompasses all claims from individuals living within a 20-mile radius of the derailment, as well as personal injury claims from those within a 10-mile radius.
The company stated that both individuals and businesses can utilize the compensation from the settlement in whatever way they deem necessary to mitigate the negative effects of the derailment. This could include addressing healthcare needs, restoring property, or compensating for any business losses incurred. Additionally, those within the 10-mile radius may opt for extra compensation for any personal injuries related to the incident, whether past, present, or future.
$600 Million Class Action Settlement
It’s important to note that the settlement does not imply any admission of liability or wrongdoing on the part of Norfolk Southern. The agreement is pending court approval, with plans to submit it for preliminary approval to the U.S. District Court for the Northern District of Ohio in April 2024. If approved, payments to class members could commence by the end of the year, contingent on final court validation.
Norfolk Southern has already invested over $1.1 billion in response efforts to the derailment, including more than $104 million in direct assistance to East Palestine and its residents. Due to the railroad’s financial responsibility for the cleanup, President Joe Biden has not declared a disaster in East Palestine, which has frustrated many locals.
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The railroad has also pledged to establish a fund for the community’s long-term health needs, although this has yet to materialize. The attorneys representing the plaintiffs indicated that this settlement is the culmination of a year-long investigation into the derailment and is expected to provide significant relief to the affected residents.
Norfolk Southern to pay $600M in Ohio derailment settlement
Certain residents of East Palestine are seeking additional time and information prior to making a decision by the upcoming deadline regarding their participation in a $600 million class-action settlement with Norfolk Southern, stemming from last year’s catastrophic train derailment. In East Palestine, Ohio, a federal judge has granted preliminary approval for a $600 million settlement related to the class action lawsuit involving Norfolk Southern and the affected residents and businesses from the toxic train derailment.
This settlement, which was revealed last month, aims to address all class action claims within a 20-mile radius of the derailment site, and for those residents opting to participate, it will also cover personal injury claims within a 10-mile radius of the incident.
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East Palestine residents push for reevaluation of $600 million settlement
Nearly 190,000 individuals stand to benefit from a potential $600 million class action settlement, pending final approval from the relevant authorities, which has been agreed upon by Norfolk Southern. Residents within a 20-mile radius of the derailment who have not opted out are included in this settlement. However, inclusion does not ensure payment; participants must submit a claim by the deadline of August 22 to qualify for any compensation.
“Deadlines are deadlines, and they are crucial in a case like this because we need to gather all pertinent information to initiate the process of calculating the settlement allocation for each class member or household,” stated Adam Gomez, an attorney representing the plaintiffs. The amount each individual may receive will vary based on several factors, including proximity to the derailment site, with those residing within a two-mile radius potentially eligible for up to $70,000.
Individuals residing within a 10-mile radius of the crash that occurred on February 3, 2023, near the Ohio-Pennsylvania border face the decision of whether to accept compensation of up to $25,000 per person for personal injuries. However, accepting this financial settlement will require them to relinquish their right to pursue legal action in the future should they or others develop cancer or other severe health conditions as a result of chemical exposure.
$600M settlement in East Palestine, OH train derailment case
The compensation amount available to residents is contingent upon their proximity to the derailment site, with individuals residing within a two-mile radius eligible for $70,000 in property damage claims. Conversely, those living at the periphery of the affected area may receive only a few hundred dollars. A significant grievance raised in the motion submitted by attorney David Graham pertains to the failure of the attorneys representing the residents in the lawsuit to disclose the findings from testing conducted by their expert, Stephen Petty.
Petty, who has provided testimony in numerous lawsuits regarding contamination issues, was tasked with assessing the extent of the pollution resulting from the release and combustion of toxic chemicals following the derailment. Some attorneys involved in the litigation had previously assured residents during media interviews that Petty’s findings would be made available in court documents to clarify the impact on East Palestine. Consequently, Graham has requested that the judge mandate the release of this information to alleviate the concerns of the residents.
Recent verdict
- Dr. Erin Haynes expressed strong disagreement with Dr. Arch Carson, stating there is no research supporting his claims.
- Haynes is leading a significant study in the area and chairs the Department of Epidemiology and Environmental Health at the University of Kentucky College of Public Health.
- Graham raised concerns that the plaintiffs’ attorneys may prioritize their potential $180 million in legal fees over the residents’ needs.
- The plaintiffs’ lawyers did not respond immediately to the motion filed on Monday.
- They have previously defended the settlement announced in the spring.
- The attorneys claim this settlement surpasses any publicly known derailment settlement in the past.
- They argue that the time residents had to assess the deal is comparable to other settlements.
- Some residents voiced dissatisfaction with the initial opt-out deadline, which was set shortly after a National Transportation Safety Board hearing.
- The timing of the opt-out deadline has raised concerns among the community.
- Residents feel they were not given adequate time to consider their options following the hearing.
