A judge said residents had the option of whether or not to opt out of potential future injury claims and could not use a federal rule to undo the consequences of a deliberate choice.
(CN) – A federal judge on Friday closed the door on an effort by residents of East Palestine, Ohio, to overturn personal injury claims filed as part of a $600 million class settlement over the 2023 Norfolk Southern derailment.
In one 29 page opinionU.S. District Judge Benita Pearson ruled against nearly 200 residents who moved in September 2025 to revoke their release. The group alleged a “calculated strategy” between Norfolk Southern and class counsel rushed the settlement to hide the true, long-term health risks after the accident.
Pearson, an appointee of Barack Obama, found that residents failed to provide the evidence needed to prove they were duped into signing away their rights to future lawsuits.
“Movants, however, have not identified any conduct that constitutes fraud, let alone a pattern,” nominee Barack Obama said in the opinion. “The mere assertion that there may be conflicting opinions among professionals regarding the severity of health risks does not amount to fraud.”
The decision stems from a February 3, 2023 train derailment in East Palestine, a town near the Ohio-Pennsylvania border, where at least 38 tracks released toxic chemicals into the air, soil and water.
After that, about 55,000 claims were filed within a 20-mile radius. residents raised concerns for health, water safety and environmental damage.
or $600 million class settlement was intended to settle the lawsuit, but some residents later sought to void their agreements, claiming they were pressured into a settlement by lawyers and railroad executives who downplayed the long-term risks.
The settlement created three payment categories, including optional compensation for class members within 10 miles of the derailments, who agreed to waive any personal injury claims related to the incident.
Residents said they were directed to the settlement before seeing full expert reports on the potential toxic contamination and that Norfolk Southern and class counsel settled for settlement before the long-term risks were known.
Pearson said existing concerns about dioxins and long-term health risks had not been hidden and had been discussed in public records and news reports for months before residents signed their notices.
“The movants had every opportunity to educate themselves before voluntarily and individually signing a release,” she said in the order, noting that even Norfolk’s attorneys were open to potential health risks that could emerge decades later.
At the center of the residents’ argument was a presentation of the municipality by toxicologist Dr. Chip Carson, who said the long-term health risks were “much less than 1%. Other experts disagreed, saying it was too early to predict long-term effects.
Residents also questioned Carson’s independence, saying he was a close associate of the class counsel. Judge Pearson rejected that claim, noting that Carson had not been paid and his assessment was supported by other studies.
The residents sought relief under a federal rule allowing courts to overturn final judgments in “extraordinary circumstances,” but Pearson found that standard had not been met.
“Rule 60 provides no relief from the consequences of a deliberate choice, even if subsequent events reveal that the choice was unwise,” she said in the order, noting that residents — many of whom had already cashed their checks — always had the choice of whether or not to sign the release.
“Movants had the individual autonomy to decide whether to participate in the ‘Personal Injury Payment’ portion of the settlement; they were not required to release their personal injury claims and it was up to each individual movant to decide whether to affirmatively participate,” she said in the order.
Pearson also cited a Sixth Circuit ruling that concluded that allowing a small portion of the 55,000 claimants to undo the deal would be unfair to the rest of the community and jeopardize the financial stability of thousands of families and businesses waiting for their share of the $600 million fund.
Norfolk Southern did not immediately respond to a request for comment.
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