Current:Home > FinanceJudge approves $600 million settlement for residents near fiery Ohio derailment -WealthMindset Learning
Judge approves $600 million settlement for residents near fiery Ohio derailment
View
Date:2025-04-13 23:42:52
A federal judge on Wednesday approved a $600 million class-action settlement Wednesday that Norfolk Southern railroad offered to everyone who lived within 20 miles (32 kilometers) of last year’s disastrous derailment in East Palestine, Ohio.
Judge Benita Pearson gave the deal final approval after a hearing where the lawyers who negotiated it with the railroad argued that residents overwhelmingly supported it, attorneys for the residents and railroad spokesperson Heather Garcia told The Associated Press. Roughly 55,000 claims were filed. Only 370 households and 47 businesses opted out.
Those who did object to the deal were vocal in their concerns that the settlement won’t provide enough and that the deal was rushed through so quickly that they can’t possibly know what the potential health impact from the derailment will be. They say it’s hard to know all the risks, given the way test results have been reported by the EPA and the fact that the lawyers haven’t disclosed everything they learned in their investigation.
The objectors had hoped the judge would order the plaintiff’s lawyers to release the tests their own expert did after the derailment and address their concerns about a toxicologist who told them at a town meeting that they shouldn’t worry because he doesn’t think anyone will develop cancer. That angered residents who have been complaining about unexplained ailments since the derailment and talking with doctors who are conducting studies to try and determine what the health impacts will be.
“These attorneys were bullying people and telling them they were never going to get any money if they didn’t take this. People felt backed into a corner,” resident Jami Wallace said.
The judge’s approval clears the way for payments to start going out quickly. The lawyers had previously said they hoped to get the first checks in the mail before the end of the year.
As part of the settlement, any aid residents received from the railroad will be deducted from their final payments. Wallace and others who had to relocate for an extended period while the railroad paid for hotels or rental homes won’t get anything.
Anyone who lived within 2 miles (3.2 kilometers) of the derailment can get up to $70,000 per household for property damage plus up to $25,000 per person for health problems. The payments drop off the farther people lived from the derailment down to as little as a few hundred dollars at the outer edges.
“This outcome would not have been possible without the resilience and support of the East Palestine community and the broader class of impacted residents and business owners,” the plaintiffs’ attorneys said in a statement. “We look forward to beginning the distribution of funds in the coming weeks to help this community rebuild and move forward.”
When the train derailed late on Feb. 3, 2023, tank cars full of hazardous chemicals ruptured and spilled their contents that caught fire just outside the small town on the Ohio-Pennsylvania border. Then three days later officials decided to needlessly blow open five tank cars of vinyl chloride and burn the toxic plastic ingredient inside because they feared they would explode.
Since the derailment, the railroad has offered residents and the community $108 million in assistance and paid for the massive cleanup.
“We made a promise to make things right and this is just one piece of that commitment,” the railroad said in a statement. “We remain committed to this community for the long haul and look forward to continuing our relationship with the Village as we work to help the area recover and thrive.”
veryGood! (182)
Related
- American news website Axios laying off dozens of employees
- John Force moved to California rehab center. Celebrates daughter’s birthday with ice cream
- Tour de France standings, results: Belgium's Jasper Philipsen prevails in Stage 10
- Dan Hurley contract details as UConn coach signs new six-year, $50 million contract
- Tony Hawk drops in on Paris skateboarding and pushes for more styles of sport in LA 2028
- Gun violence over July 4 week dropped in 2024, but still above 2019 levels
- Imagine Dragons' Dan Reynolds talks 'harm' of Mormonism, relationship with family
- With Tiger Woods’ approval, Keegan Bradley locks in Ryder Cup captaincy — perhaps even as a player
- Can Bill Belichick turn North Carolina into a winner? At 72, he's chasing one last high
- Why 'Bachelorette' Jenn Tran kissed only one man during premiere: 'It's OK to just say no'
Ranking
- North Carolina trustees approve Bill Belichick’s deal ahead of introductory news conference
- Joe Tessitore to join WWE as play-by-play voice, team with Corey Graves, Wade Barrett
- Biden’s support on Capitol Hill hangs in the balance as Democrats meet in private
- Case against Army veteran charged with killing a homeless man in Memphis, Tennessee, moves forward
- Federal court filings allege official committed perjury in lawsuit tied to Louisiana grain terminal
- These are the best and worst U.S. cities for new college grads
- Appeals panel keeps 21-month sentence for ex-Tennessee lawmaker who tried to withdraw guilty plea
- These are the best and worst U.S. cities for new college grads
Recommendation
New Zealand official reverses visa refusal for US conservative influencer Candace Owens
Joe Tessitore to join WWE as play-by-play voice, team with Corey Graves, Wade Barrett
No relief: US cities with lowest air conditioning rates suffer through summer heat
Doomsday cult leader Paul Mackenzie goes on trial after deaths of over 400 followers in Kenya
Taylor Swift makes surprise visit to Kansas City children’s hospital
How to Score Your Favorite Tarte Cosmetics Concealer for Just $1 and Get Free Shipping
Topical gel is latest in decades-long quest for hormonal male birth control
These cannibal baby sharks eat their siblings in the womb – and sketches show just how gruesome it can be