A federal judge has given final approval to a $600 million class-action settlement offered by Norfolk Southern railroad to residents living within 20 miles of last year's disastrous derailment in East Palestine, Ohio. The settlement was approved after a hearing where lawyers argued that the majority of residents supported it, with roughly 55,000 claims filed and only a small number opting out.
Some residents who objected to the settlement expressed concerns that it may not provide adequate compensation and that the process was rushed. They raised questions about potential health impacts from the derailment and criticized the lack of transparency in the investigation. Despite these objections, the judge's approval paves the way for payments to begin soon.
Under the settlement, residents living within 2 miles of the derailment can receive up to $70,000 per household for property damage and up to $25,000 per person for health issues. The amount decreases for those living farther away from the incident.
The derailment occurred on Feb. 3, 2023, when tank cars carrying hazardous chemicals caught fire near the Ohio-Pennsylvania border. In response, the railroad has offered $108 million in assistance to residents and the community and has funded the cleanup efforts.
In a statement, the railroad expressed its commitment to the community and its intention to continue supporting the area's recovery and growth. The plaintiffs' attorneys also acknowledged the resilience of the East Palestine community and expressed their readiness to distribute the funds to aid in rebuilding and moving forward.
