Judge approves $600M East Palestine train derailment settlement
- Norfolk Southern offered to pay out $600 million to impacted residents
- Some locals are hesitant to accept the offer, which they say feels rushed
- A judge could rule on the matter during a hearing Wednesday morning
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(NewsNation) — A federal judge on Wednesday approved Norfolk Southern’s $600 million class-action settlement offer, more than a year after the 2023 toxic train derailment in East Palestine, Ohio.
Judge Benita Pearson approved the class-action settlements and a 27% fee for attorneys, overruling all objections.
The hearing came on the heels of an Associated Press analysis that raised concerns about the Environmental Protection Agency’s handling of contamination data from the derailment site. Many residents question the agency’s transparency about potential resulting health risks.
The hearing took place at the Northern District Court of Ohio in Youngstown.
The decision caused anger and frustration among East Palestine residents both in the courtroom and in an overflow room at the courthouse.
Resident Jami Wallace walked out of the courtroom after the judge announced her decision calling it a “sham.” Wallace’s outburst caused the judge to stand up and tell police to “put her on the pavement.”
East Palestine train derailment
A Norfolk Southern train carrying toxic chemicals derailed just before 9 p.m. local time Feb. 3, 2023, in East Palestine.
Some 1,500 residents were told to evacuate. Fearing an explosion, officials vented and burned five tank cars, releasing the carcinogen vinyl chloride into the air. Minutes later, a toxic plume of smoke smothered the region.
Three days after the derailment, the EPA said it hadn’t detected contaminants at “levels of concern” and gave the all-clear for residents to return. Those who did reported developing rashes and feeling ill.
In March 2023, an independent testing expert confirmed residents’ fears that carcinogens undetected by the Ohio EPA were in the water. More tests revealed dioxins — the most toxic compounds on the planet — in the soil, water and residents’ air filters.
Today, those who remain in East Palestine and the surrounding area say their health problems are getting worse.
Norfolk Southern settlement
The rail company agreed in April to pay $600 million in a class-action lawsuit settlement tied to the derailment. Residents, however, worry the money won’t cover potential future health needs and won’t amount to much once it’s divided among recipients.
Attorneys for East Palestine residents filed a motion in August asking the judge to reevaluate the settlement.
“To accept, we would have to say that Norfolk Southern is not liable for anything, when, in fact, they were guilty of so many crimes here,” East Palestine resident Tammy Tsai told NewsNation ahead of Wednesday’s hearing.
The residents’ complaint focused on allegations that settlement lawyers buried a contracted exposure expert’s findings about the state of soil and water in the affected area. They argue the settlement agreement was rushed and allege lawyers are colluding with Norfolk Southern.
That exposure expert, Stephen Petty, was among several people who filed affidavits with the court and the EPA’s inspector general.
“It is one of the few times where I’ve been involved, where I don’t think that the information that should get out there is getting out there,” Petty told NewsNation in an exclusive interview earlier this week.
