A federal judge has approved Norfolk Southern’s $600 million settlement resolving a class-action lawsuit that stems from the February 2023 train derailment in East Palestine, Ohio.
U.S. District Judge Benita Pearson granted final approval to the deal during a Sept. 25 hearing on last year’s derailment in the small town of roughly 4,700 people.
While around 55,000 claims were filed against Norfolk Southern in the wake of the Feb. 3, 2023, incident, just 370 households and 47 businesses opted out of the proposed deal.
The settlement covers residents, property owners, and businesses impacted by the derailment and subsequent chemical spill, although any aid they received from Norfolk Southern in the wake of the derailment will be deducted from their final payments.
More than 1,500 residents were evacuated from their homes as a precautionary measure on Feb. 3, 2023, when a Norfolk Southern Railway freight train carrying 151 cars derailed, spilling hazardous chemicals on approximately 11 of the cars onto the ground and into the air.
Vinyl chloride is a highly flammable, man-made chemical widely used in plastics such as polyvinyl chloride plastic and vinyl products, according to the Environmental Protection Agency (EPA), which has classified it as a Group A human carcinogen, noting that short-term human exposure to high levels of the chemical can affect the nervous system and cause dizziness, drowsiness, and headaches.
Long-term exposure to vinyl chloride through inhalation and oral exposure has been shown to increase the risk of a rare form of liver cancer, according to the EPA.
To avoid an explosion in the wake of the derailment, a controlled release of the hazardous chemicals on board was performed.
Residents Report Health Issues
After the evacuation was lifted and residents returned to their homes, many began to report multiple health issues including rashes, headaches, and a burning sensation in their lungs and eyes.Despite continued concern regarding possible long-term health issues in the wake of the incident, health officials, including the EPA, have assured residents that testing showed the air and drinking water in the area were safe.
In a statement to multiple media after the settlement was greenlit by Pearson, attorneys for plaintiffs in the lawsuit against Norfolk Southern praised the “resilience and support of the East Palestine community and the broader class of impacted residents and business owners.”
“We look forward to beginning the distribution of funds in the coming weeks to help this community rebuild and move forward,” the attorneys said.
The railroad said in a statement that the settlement is just one part of its commitment to “make things right.”
“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,” Norfolk Southern told multiple media.
In addition to the class-action lawsuit over the derailment, Norfolk Southern settled with the federal government in May for an estimated $310 million. Under that deal, the railway company will pay $235 million for cleanup operations, $25 million for a 20-year community health program, and $15 million for an alleged violation of the Clean Water Act.
Norfolk Southern is also not admitting to wrongdoing under that deal.
A spokesperson for Norfolk Southern told the Epoch Times in an emailed statement that the approval 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,” the spokesperson said. “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.”
The Epoch Times contacted the EPA for comment but received no replies by publication time.
