$600M settlement for East Palestine residents announced
Norfolk Southern has reached a $600 million settlement in a class-action lawsuit. Yet, numerous residents fear that this compensation may not adequately address their future health needs or provide sufficient relief once distributed. Currently, the proposed settlement agreement is awaiting preliminary approval from the court.
Plaintiffs have alleged various economic and non-economic losses, including real and personal property damage, displacement expenses, increased health risks, lost wages, emotional distress, and disruption to daily life. The settlement seeks to address claims from individuals who lived, worked, owned property, or operated businesses within a 20-mile radius of the East Palestine, Ohio, derailment site between February 3, 2023, and April 26, 2024. Compensation is also available for personal injury claims within a 10-mile radius.
The proposed Settlement Fund of $600 million will cover settlement administration, attorneys’ fees and expenses for class counsel, and awards for class representatives. Individual awards will be determined based on location, household size, and duration of displacement. Additionally, those physically present within 10 miles of the derailment site may receive additional payments in exchange for releasing personal injury claims.
Class Members can choose to exclude themselves from the Settlement or object to its terms by filing a notice of exclusion or a formal objection with the Settlement Administrator by June 24, 2024.
A Final Approval Hearing is scheduled for September 25, 2024, where the court will assess the fairness and adequacy of the settlement. Some issues to be decided will be the class counsel’s request for 27% of the gross settlement value ($162,000,000), costs of notice/administration/case-related expenses of up to 3% of the gross settlement value ($18,000,000), and a $15,000 award to each of the class representatives.
Many Class Members have raised concerns regarding the Settlement Fund amount and the request for class attorney fees, as they represent only a small portion of all Class Members. As the legal process unfolds, uncertainties persist regarding the settlement's adequacy and the derailment's enduring impact on affected communities.
