Judge Denies Extension for East Palestine Train Settlement

Judge Denies Extension for East Palestine Train Settlement

Introduction

A federal court in Ohio has denied a request to extend the deadline for residents to decide whether to accept their share of a $600 million class action settlement related to the February 2023 train derailment in East Palestine.

The judge ruled that the settlement was widely publicized, and residents had ample time to review it. This included a direct notice program and a claims office in East Palestine, which opened in June 2024 to offer in-person assistance.

The judge emphasized that delaying the opt-out deadline would postpone payments to other residents into 2025. The motion to extend the deadline was filed by an attorney who argued that the residents' legal representatives had not disclosed the results of environmental testing conducted by their expert. The attorney accused the class attorneys of prioritizing their $180 million fee over residents' concerns. Accepting the class action payment would prevent future lawsuits against Norfolk Southern Railroad.

The settlement amounts vary based on proximity to the derailment site. Residents within two miles could receive $70,000 for property damage, those within 10 miles could get $25,000, and people living on the outer edge of the affected area might receive only a few hundred dollars.