Winston Weaver $4.5M Business Evacuation Settlement

Businesses or charitable organizations that operated within one mile of the Winston Weaver facility in Winston-Salem, North Carolina, on Jan. 31, 2022, and experienced economic or nuisance-related damages due to the fire and evacuation (excluding personal injury) may be eligible to claim a cash payment from a class action settlement.

Winston Weaver Co. Inc. agreed to pay $4.5 million to settle a class action lawsuit alleging negligence, negligence per se, gross negligence, private nuisance and public nuisance, which plaintiffs claim led to the fire and subsequent evacuation of the surrounding area.

Who can file a claim?

Businesses or charitable organizations must meet all of the following criteria:

• They are a lawful, organized activity or enterprise, such as a corporation, limited liability company, partnership or sole proprietorship.
• They engage in commercial, industrial or professional activities to provide goods or services either for profit or to further a nonprofit mission.
• They operated or were located within the one-mile evacuation zone of the Winston Weaver facility on Jan. 31, 2022.
• The Winston Weaver fire and evacuation caused the business economic and/or nuisance-related damages (excluding damages arising from personal injury).

Businesses do not need to own the property; tenants and lessees are also eligible if they operated at a qualifying location.

Who is excluded from the class?

Certain entities are not eligible to participate in this settlement, including those that participate in unlawful, recreational or hobbyist activities or those temporarily peddling goods or services in a residential area.

Furthermore, those who already participated in the individual settlement as a natural person cannot file a claim under this business settlement.

How much can class members get?

The settlement offers several options for compensation, depending on the type of claim and the documentation provided:

• Flat election payment: Businesses that cannot provide sufficient documentation of losses may claim a flat payment of $10,000 for closure during the three-day mandatory evacuation window. Those that can prove closure and loss of revenue for a period longer than three days, or have extraordinary losses, may claim up to $35,000.
• Actual net business loss: Businesses that can provide documentation (such as federal tax returns for 2022 and 2023, bank statements, sales tax returns, financial statements, payroll records, etc.), may claim actual net business losses attributable to the incident. The settlement administrator calculates this as the difference between expected revenue (but-for revenue) and actual revenue during the claim period plus continuing expenses and minus any offsets from insurance or other payments.
• Extraordinary loss or property damage: In addition to the above, businesses may submit claims for extraordinary loss or property damage with strict itemization and supporting documentation. For businesses that select the flat payment option, the settlement caps extraordinary loss claims at $25,000 per business.

All payments may be subject to a pro rata reduction if the total value of valid claims exceeds the net settlement fund.

How to claim a settlement payout

Eligible businesses can file a claim online or downloading and printing the corresponding form (flat payment%20-%20Flat%20Fee.pdf), damages%20-%20Damages.pdf) or extraordinary losses%20-%20Extroardinary.pdf)), completing it and mailing it to the settlement administrator. The claim deadline is July 15, 2026.

Settlement administrator's mailing address: Winston-Salem Business Settlement, Settlement Administrator, PO Box 3207, Portland, OR 97208-3207

The settlement does not specify the form of payment businesses will receive.

What proof or documentation is necessary to submit a claim?

• To file an online claim, businesses must provide the unique ID and PIN from the settlement notice they received.
• To file a flat payment claim, businesses must certify they closed during the evacuation window.
• To file an actual net business loss claim, businesses must provide documentation, such as federal tax returns for 2022 and 2023, bank statements, sales tax returns, financial statements, payroll records or other evidence of loss.
• To file an extraordinary loss or property damage claim, businesses must provide strict itemization and supporting documentation (invoices, receipts, photos, etc.).

$4.5 million settlement fund breakdown

The $4,500,000 settlement fund includes:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $1,485,000
• Attorneys' expenses: To be determined
• Service awards to class representatives: $50,000 total
• Payments to approved class members: Remainder of the fund

Important dates

• Deadline for exclusion: April 24, 2026
• Final fairness hearing: May 20, 2026
• Deadline to file a claim: July 15, 2026

When is the Winston Weaver business settlement payout date?

The settlement administrator will distribute payments after the court resolves any appeals and grants final approval of the settlement.

Why is there a class action settlement?

This class action lawsuit alleged a fire at the Winston Weaver fertilizer plant on Jan. 31, 2022, led to the evacuation of a one-mile radius area in Winston-Salem, North Carolina, resulting in business losses and disruption. The plaintiffs claimed Winston Weaver Co. Inc. was responsible for the incident due to negligence, gross negligence, negligence per se, private nuisance and public nuisance.

The company denies any wrongdoing but agreed to settle to avoid the risks and costs of further litigation.

Sources

1. Claim forms
2. Class notice.pdf)
3. Settlement agreement
4. Settlement FAQ