Monday, June 30, 2025

$600M Train Derailment Settlement Looks Set for Approval As Very Few Opt Out

A $600 million settlement in the Ohio train derailment case looks to be close to being finalized after less than 400 families who lived near the site where it happened objected to the deal.

Lawyers have said that while some residents have expressed their reservations about whether the agreement offers them enough compensation, so few of them opted out of the class action lawsuit that the agreement should be approved later in September.

The deal was negotiated between layers and Norfolk Southern, who operated the train that derailed near East Palestine, Ohio, in February of last year. Those lawyers, who are representing the families, said 47 businesses and 370 households that are located in a 20-mile radius around the site opted out of the payments that are being issued for property damage they suffered.

The lawyers said only 82 households that are located within two miles of the crash site opted out. Those people were promised that they’ll receive $70,000.

Those who live closer to the outer edge of the covered area may only receive a few hundred dollars, should a federal judge ultimately approve the settlement. A hearing is scheduled for the matter on September 25.

By the end of last week, nearly 55,000 claims were filed to the class action settlement. It’s expected that the final number will be close to that, as the deadline for form submission was August 22.

In a statement, the lawyers for the plaintiffs said:

“It is deeply satisfying that this community overwhelmingly supports this settlement. This result would not have been possible without their resolve and determination to hold Norfolk Southern accountable.”

There is a separate payment that some residents could receive for personal injuries that they suffered. That settlement, which would see them receive a payment of as much as $25,000, was much more controversial since people had to waive their right to sue at any point in the future if they were to eventually develop a serious ailment such as cancer.

Even still, nearly 97% of residents in East Palestine signed onto the agreement.

Some of the residents, though, have said that the payments aren’t high enough to compensate them for the suffering. They also don’t like that any aid payments they have already received from the company will ultimately be deducted from the settlement total that they’ll receive.

Among the people who objected to the deal, one key concern is that the contamination that was left behind after the hazardous chemicals spilled out and burned following the derailment could ultimately prove to be worse than they now know.

That prompted some to file a motion that requested the judge to order lawyers to release all details of the tests experts conducted in the region following the derailment.

Those results can’t be released, though, the lawyers for the plaintiffs argued, since that would be in violation of the settlement terms.

Still, they attempted to reassure community members that extensive research was done to ensure the settlement was adequate.

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