Railroad operator Norfolk Southern has agreed to pay $600 million to settle a class action lawsuit over the February 2023 East Palestine train derailment.
The derailment spilled hazardous materials, including vinyl chloride, all over the small town.
After derailing, the train caught fire and released millions of gallons of hazardous materials.
The settlement, which still needs court approval, would compensate "for past, present, and future personal injuries resulting from exposure to the chemicals involved."
“If approved by the court, the agreement will resolve all class action claims within a 20-mile radius from the derailment and, for those residents who choose to participate, personal injury claims within a 10-mile radius from the derailment,” Norfolk Southern said in a press release on Tuesday. “This is another promise kept by Norfolk Southern to make it right for the people of East Palestine and the surrounding communities.”
The company also claimed it has “made commitments to address three long-term concerns of residents: drinking water, home values, and healthcare.”
“Individuals and businesses will be able to use compensation from the settlement in any manner they see fit to address potential adverse impacts from the derailment,” the press release explained. “This could include healthcare needs and medical monitoring, property restoration and diminution, and compensation for any net business loss. In addition, individuals within 10-miles of the derailment may, at their discretion, choose to receive additional compensation for any past, current, or future personal injury from the derailment.”
Reuters reports:The agreement will resolve all class action claims within a 20-mile radius of the derailment and, for those residents who choose to participate, personal injury claims within a 10-mile radius, court documents show.
Conroy estimated there are just under 100,000 class members who will be eligible to receive funds from the settlement, including up to 25,000 residents who live within 10 miles and another roughly 72,000 living within 20 miles of the crash site.
Some details still need to be finalized, including setting an allocation formula and how to efficiently process claims and distribute funds. The lawyers suing Norfolk Southern hope to get initial payments distributed by the end of 2024, they said.
As part of the settlement agreement, Norfolk Southern will not make “any admission of liability, wrongdoing, or fault.”
Last September, Norfolk Southern agreed to compensate homeowners in the area who had to sell their properties at a loss due to the derailment and contamination.
The fund was available to people who owned homes within 91 square miles of the crash site.
