CHARLESTON—A federal judge finally signed off on the settlement in the class action lawsuit filed against West Virginia American Water (WVAW) in the 2014 Elk River chemical spill that caused a water contamination crisis across nine counties in West Virginia.
The chemical spill affected more than 300,000 people when it occurred.
District Judge John Copenhaver signed to final order on Friday, which means now the nearly $151 million in settlement funds can start being dispersed to the claimants.
With more than 87,000 simple claim forms, as well as more than 6,500 simple business and government claims and 2,700 individual review claims, the claim forms totaled $162 million.
Copenhaver noted in the final order that there were so many claims, that claimants will receive less than initially expected.
"What is quite clear is that there will not be sufficient funds to pay the entirety of the amounts that were presented in the class notice as being the projected claim recoveries," Copenhaver wrote.
Copenhaver believes claimants will receive approximately 20 percent less than projected.
Copenhaver also lowered the amount assessed in attorney's fees from 25 percent to 22 percent.
The class-action lawsuit alleged WVAW did not adequately prepare for or respond to the chemical spill and that Eastman Chemical, the maker of the chemical MCHM, did not properly warn Freedom Industries of the dangers of its chemical or take any action when officials learned that the Freedom facility along the Elk River in Charleston was in disrepair.
WVAW and Eastman both deny any liability and blame the crisis on Freedom Industries.
The settlement originally allowed flat payments of $550 for residential households and $180 per additional resident, or an individualized claim with proof of expenditures. Businesses, nonprofits and government entities were also eligible to file claims.
Those numbers will likely be lowered to $440 for the flat payments.
U.S. District Court for the Southern District of West Virginia Case number: 2:14-cv-01374
