A federal appeals court upheld most of a $600M East Palestine train derailment settlement but ordered review of nearly $8M in attorney fees due to lack of standing.

The Sixth Circuit partially reversed a lower court’s fee decision in the East Palestine train derailment settlement, upholding most of the ruling but ordering further review of how Morgan & Morgan received nearly $8 million in fees. The court ruled the firm lacked standing to challenge the quick-pay provision allowing attorneys to be paid within 14 days of settlement approval, noting it had supported and signed the agreement. While affirming the overall settlement, judges expressed concern that immediate attorney payments could undermine plaintiffs’ interests, urging safeguards like claw-back provisions and third-party oversight. The settlement, worth $600 million, allocated $162 million in fees and $18 million in expenses to attorneys, who were paid quickly while affected residents and businesses await compensation.