Judge approves $600 million class-action settlement in East Palestine derailment

A federal judge on Wednesday signed off on a $600 million payment from the Norfolk Southern railroad to settle claims related to the infamous 2023 derailment of a train carrying hazardous chemicals in East Palestine, Ohio.

Judge Benita Pearson of the Northern District of Ohio, an Obama appointee, signed off on the settlement, first announced in April.

The settlement does not include an admission of wrongdoing by the railroad.

In August, some of the residents included in the class-action unsuccessfully moved for Pearson to give them more time to review the settlement, particularly while possible long-term health impacts on residents remain unclear.

“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,” court-appointed class counsel in the case 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.” 

While no one was killed or directly injured in the February 2023 derailment, more than 1,500 people were evacuated and local officials conducted a controlled burn on the cars, some of which contained vinyl chloride, a toxic substance used in the production of plastics.

Although Environmental Protection Agency officials have said there is no ongoing threat to residents, some reported rashes and other skin conditions after the derailment. National Transportation Safety Board (NTSB) Chair Jennifer Homendy testified at a Senate hearing earlier this year that the burn, which created a widely visible chemical plume, was unnecessary, saying the crash site “was stabilized well, well before the vent and burn. Many hours before.”

In addition to the class-action lawsuit, the railroad settled with the Biden administration for an estimated $310 million in May. That settlement, which also does not constitute an admission of wrongdoing by Norfolk Southern, includes $235 million toward cleanup and another $15 million for allegations of violating the federal Clean Water Act.

A report by the NTSB determined that the crash was caused by an overheated wheel bearing, which was only detected by track sensors when it was already too late to halt the train. A bipartisan bill that would impose more stringent railway safety requirements introduced by Ohio Sens. Sherrod Brown (D) and JD Vance (R) has yet to receive a vote.

“Today marks an important day for East Palestine and the surrounding communities. We made a promise to make things right and this is just one piece of that commitment,” a Norfolk Southern spokesperson 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.”

Updated at 4:49 pm EDT.