Insights

In East Palestine, Ohio, a $600 million class action settlement has been proposed following a train derailment in February 2023. Despite concerns regarding the adequacy of the compensation, only 370 households and 47 businesses opted out of the settlement, which promises $70,000 for property damage to those within two miles of the crash site. The settlement is set to be reviewed by a federal judge on September 25, with a total of 54,925 claims filed by residents affected by the incident. The settlement includes a separate payment of up to $25,000 for personal injuries, which has been met with controversy due to the requirement for residents to waive their right to future lawsuits related to serious health issues. Despite this, approximately 97% of residents chose to participate in this aspect of the settlement. Many residents have expressed dissatisfaction with the compensation, feeling it does not adequately address their suffering and the long-term effects of the contamination. Concerns persist regarding the potential long-term health impacts from hazardous chemicals released during the derailment. Some residents have requested the release of test results conducted by experts to better understand the contamination levels. However, the plaintiffs' lawyers have stated that releasing these tests would violate the settlement terms, although they assert that thorough research was conducted to ensure the settlement's adequacy. The National Transportation Safety Board has confirmed that the derailment was caused by an overheated wheel bearing, which was not detected in time. Investigators also noted that the decision to burn vinyl chloride tank cars was unnecessary, as they were not at risk of exploding. The ongoing cleanup and medical monitoring will be funded through a separate federal settlement with Norfolk Southern.