East Palestine Residents Struggle 3 Years After Toxic Train Derailment

Delays, fine print, and alleged mismanagement have left many without payouts from the $600 million settlement.

Published on Mar. 2, 2026

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Nearly three years after a Norfolk Southern train derailment in East Palestine, Ohio, residents describe a payout process so snarled by delays, fine print, and alleged mismanagement that many still haven't seen a dollar from the $600 million class-action settlement. The story follows locals whose lives were upended by the derailment and the legal aftermath, as well as a new lawyer trying to unwind the deal by accusing the original attorneys of misleading the community.

Why it matters

The East Palestine derailment highlighted the risks of transporting hazardous materials through residential areas, as well as the challenges communities face in securing adequate compensation and support in the aftermath of such disasters. The ongoing struggles of residents illustrate the complexities of the legal and administrative processes involved in managing the fallout from major environmental incidents.

The details

The $600 million class-action settlement, hailed as historic, quickly turned into a maze: Attorneys took $180 million upfront, a private-equity-backed administrator allegedly misallocated more than $17 million and denied thousands of claims, and residents who signed away future health claims for roughly $25,000 are now learning there isn't enough money to give everyone even that. The train carried thousands of gallons of vinyl chloride, and the railroad set the toxins on fire after the crash in a controlled burn, 'contrary to expert advice it received'.

  • The Norfolk Southern train derailment occurred nearly 3 years ago in East Palestine, Ohio.
  • The $600 million class-action settlement was reached shortly after the derailment.

The players

Norfolk Southern

The railroad company responsible for the train derailment in East Palestine, Ohio.

Ben Terwilliger

A 54-year-old resident whose home is near the derailment site.

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What they’re saying

“They thought, 'They're hillbillies, throw them a couple bucks and be done with it,'”

— Ben Terwilliger (The Lever)

What’s next

A new lawyer is trying to unwind the original $600 million settlement deal by accusing the attorneys who negotiated it of misleading the East Palestine community.

The takeaway

The ongoing struggles of East Palestine residents highlight the complexities and challenges communities face in securing adequate compensation and support in the aftermath of major environmental disasters, even when large settlements are reached. This case underscores the need for greater transparency, accountability, and community-centered approaches in managing the fallout from such incidents.