Sixth Circuit Upholds $600M East Palestine Train Derailment Settlement
The Sixth Circuit affirmed a $600 million settlement approval in the East Palestine derailment case.
Why it matters: This ruling sets a key precedent on fiduciary duties of class counsel and finality in mass tort settlements, critical for environmental and corporate litigation practitioners.
- The $600 million settlement covers claims within a 20-mile radius of the February 2023 derailment.
- 196 residents unsuccessfully sought to undo personal-injury waivers alleging fraud by class counsel and Norfolk Southern.
- The Sixth Circuit found no fraud, extraordinary circumstances, or evidentiary hearing need.
- Norfolk Southern had no duty to disclose confidential opt-out thresholds that could void the deal.
On November 10, 2026, the Sixth Circuit Court of Appeals upheld the denial of a motion by 196 East Palestine residents seeking to reopen a $600 million class-action settlement with Norfolk Southern. The settlement compensates individuals and businesses affected by a February 3, 2023, Norfolk Southern train derailment in East Palestine, Ohio, which caused a major fire and toxic chemical release.
The settlement, approved by U.S. District Judge Benita Y. Pearson in September 2024, covers all claims within a 20-mile radius of the derailment and provides additional compensation for personal injury claims within 10 miles. Out of more than 190,000 households in the affected area, only 173 opted out, demonstrating strong class participation.
The 196 residents attempted to undo their personal-injury waivers alleging that class counsel and Norfolk Southern concealed evidence or committed fraud. However, the appellate court ruled there was no evidence of fraud or extraordinary circumstances and no need for further evidentiary hearings. Circuit Judge Amul R. Thapar emphasized that "compromise requires give and take," noting that unwinding the settlement due to alleged undisclosed evidence would undermine the careful compromise reached.
The Sixth Circuit also clarified that class counsel's duty under Rule 23 is to the class members, not the court, and therefore accusations that the lawyers defrauded the judge are unfounded. Moreover, Norfolk Southern was found to have no obligation to disclose confidential opt-out thresholds that would have allowed it to walk away from the settlement.
This decision reinforces the finality of complex mass tort settlements and highlights the fiduciary responsibilities of class counsel, offering guidance to legal professionals managing large-scale environmental and corporate litigations.
By the numbers:
- $600 million — settlement amount agreed in April 2024
- 196 residents — sought to undo personal-injury waivers post-settlement
- 173 households — opted out of the settlement out of over 190,000
- 20 miles — radius around derailment site covered by settlement