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Class action counsel asks settlement be approved

Legal fees could be as high $180 million

EAST PALESTINE, Ohio — Attorneys representing the plaintiffs in the class action lawsuit against Norfolk Southern filed a motion, asking the Ohio District Northern District Court to grant preliminary approval of the $600 million principal settlement that was announced earlier this month.

Despite what the motion called a belief that “the claims asserted against Norfolk Southern in this case have merit” and that plaintiffs would “ultimately be successful in prevailing on the merits at trial,” the length of time it would take for the case to play out in court, coupled with the expense of that litigation and the uncertainty of how it would end led the plaintiffs to seek a settlement.

“The settlement agreement between Norfolk Southern and Plaintiffs will provide relief now, as opposed to years, or even decades, down the road,” the motion read. “Recognizing that further litigation would be risky, burdensome, and expensive, plaintiffs and Norfolk Southern agree that it is desirable and beneficial that the case is settled.”

The motion said the agreement “provides substantial recovery” for the East Palestine community and surrounding area, and “will provide households, families, and local businesses much-needed, immediate relief for the losses, suffering, and inconvenience they have endured since February 3, 2023.”

The motion and exhibits filed along with it revealed the proposed timeline of the approval process, setting the final approval hearing as Sept. 25.

The documents also revealed how much the plaintiffs’ lawyers could receive from brokering the deal. Under the agreement, class counsel agrees to “seek no more than 27% of the total monetary recovery” and “costs and expenses up to 3% of the fund.” That means the attorneys stand to pocket $180 million — $162 million in legal fees and $18 million in other expenses.

The filing also requested that Kroll Settlement Administration LLC be appointed as the settlement administrator who “will determine the allocation formula and fixed amounts” based on scored criteria including geographic proximity, household size, number of children in the household, relocation mandates, and length of displacement with payments will be distributed based on the allocated points.

The motion clarified that only claims within the first 10 miles will be scored. For plaintiffs 10 to 20 miles, only actual displacement and extraordinary injuries will be considered. Businesses are entitled to losses that can be proven through tax returns or other documents.

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