East Palestine Residents Feel Betrayed as Toxic Train Derailment Settlement Falls Short
EAST PALESTINE, Ohio — For Ashley Wright, returning to her hometown of East Palestine was supposed to be a fresh start. After years away, she dreamed of raising her family in the close-knit community she once called home. But just two months after her return, a catastrophic Norfolk Southern train derailment in February 2023 shattered those hopes, spilling toxic chemicals like vinyl chloride into the environment.
The subsequent decision to burn off the chemicals sent a massive plume of toxic smoke into the air, leaving residents grappling with fear and uncertainty.
“You don’t know what’s in the air or what’s lingering,” Wright told Spectrum News. “Every sniffle, every bloody nose, you wonder: Is it just normal, or is it because of the train?”
The derailment prompted a $600 million class action settlement with Norfolk Southern, with $120 million earmarked for personal injury claims. Residents who signed on forfeited their right to sue the company for any future health issues. Initially hesitant, Wright and her family ultimately joined the settlement after lawyers projected average payouts of $25,000 per person for those living within two miles of the crash site.
“We signed up because of that $25,000 promise,” said Wright’s mother, Carrie Workman, a lifelong East Palestine resident. “We thought it was worth it.”
But the reality has been far from what was advertised. Months after signing, Wright’s family received just under $15,000 each, while Workman and her husband got only $5,000.
“It’s sickening,” Wright said. “You can’t put that money away and expect it to cover future health problems.”
The discrepancy has left many residents feeling misled and betrayed.
A Promised Payout That Never Materialized
Class action lawyers initially estimated payouts at $10,000 per person but later increased the projection to $25,000 during a virtual town hall in August 2024. They distributed flyers and spoke to media outlets, urging residents to sign up. However, the total fund for personal injury claims remained fixed at $120 million. As more residents joined, the payouts shrank significantly.
“They lured us in with that $25,000 number,” Workman said. “Now, I wish I’d never signed.”
William Hugar, whose home sits just 0.01 miles from the derailment site, received just over $10,000 despite being eligible for a higher payout under the settlement’s terms.
“Insulted,” Hugar said. “I didn’t crash the train.”
Misleading Information and Delayed Payments
The settlement process was further complicated by a dispute between class action lawyers and Kroll Settlement Administration, the original company tasked with distributing payments. The delays left residents waiting nearly a year and a half for their money. Epiq, the company now handling the payouts, stated that the average case is worth roughly $12,400—less than half of what residents were promised.
Court documents revealed that the decision to raise the projected payout came after an email from a class action lawyer warned that low sign-up rates threatened the entire settlement. Norfolk Southern had the right to withdraw if not enough residents joined the personal injury claims.
“They were afraid the settlement would fall apart,” said Mindy Bish, a lawyer advocating for East Palestine residents. “They knowingly misled people to get more sign-ups.”
Residents Left Feeling Betrayed
Class action lawyers were paid $180 million weeks after the settlement was approved, thanks to a quick-pay provision. Meanwhile, many residents feel abandoned.
“Class counsel went poof,” Wright said. “We’ve heard nothing from them since.”
Residents like Michele LaBate-Watterson were baffled by the settlement’s complex payment plan, which used a point system to calculate payouts. While promotional materials suggested each point was worth $250, a footnote buried deep in the documents clarified that the value was undetermined. Epiq later confirmed that each point is worth just $124.60.
“We were lied to from the start,” Workman said.
A Community Fractured
For many, the settlement controversy has deepened the scars left by the derailment.
“It fractured the whole town,” Workman said. “It’s not the same place I grew up in.”
William Hugar summed up the feelings of many residents: “We’re hoping for justice, but nothing fair has happened to us so far.”
As East Palestine continues to grapple with the fallout from the derailment, the settlement debacle has only added to the sense of betrayal and mistrust.
— Reported by Nexio News
