Norfolk Southern to Pay $600 Million in Settlement for East Palestine Train Derailment
Norfolk Southern Corporation, a major railroad company, has reached a groundbreaking $600 million settlement to resolve a class action lawsuit related to a train derailment that occurred in East Palestine, Ohio in 2023. The incident, which took place on February 3, involved a Norfolk Southern Railway freight train derailing and spilling hazardous chemicals, including vinyl chloride, into the environment.
The derailment caused significant damage, with 38 rail cars coming off the tracks and a subsequent fire damaging 12 additional cars. Out of the 20 cars carrying hazardous materials, 11 derailed, posing a serious threat to the safety and well-being of the residents in the area. Vinyl chloride, when burned, produces phosgene gas, which was used as a chemical weapon during World War I.
In response to the incident, Norfolk Southern Corporation has committed to addressing three long-term concerns of the affected residents: drinking water, home values, and healthcare. The company has already initiated programs to mitigate drinking water and home value concerns. However, with this settlement agreement, additional significant monetary relief will be provided to individuals for healthcare purposes and to support local businesses in their rebuilding efforts.
It is important to note that Norfolk Southern Corporation has not admitted any liability, wrongdoing, or fault as part of this settlement agreement. The agreement was reached after extensive negotiations with court-appointed class counsel and a mediator. Pending court approval, the settlement is expected to be submitted for preliminary approval by the U.S. District Court for the Northern District of Ohio later this month. Payments to affected individuals and businesses are set to begin by the end of the year.
The settlement agreement aims to provide finality and flexibility for the members of the settlement class. Individuals and businesses will have the freedom to use the compensation received from the settlement in any manner they see fit to address potential adverse impacts from the derailment. This includes healthcare needs, property restoration, compensation for business losses, and more. Additionally, individuals within a 10-mile radius of the derailment have the option to receive additional compensation for any past, current, or future personal injuries resulting from the incident.
Norfolk Southern Corporation has already demonstrated its commitment to supporting the affected communities even before this settlement agreement. The company has provided $104 million in community assistance to East Palestine and the surrounding areas in Ohio and Pennsylvania. This includes funding for a regional safety training center, improvements to East Palestine’s city park, direct payments to residents, support for local first responders, upgrades to drinking water infrastructure, community-directed projects, and a grant for economic development.
The allocation and distribution of funds to households, businesses, and individuals will be determined by court-appointed class counsel. The settlement details, including contact information for a Settlement Administrator and a Claims Assistance Center in East Palestine, will soon be communicated to class members.
The $600 million settlement is a significant step towards addressing the long-term concerns of the residents affected by the East Palestine train derailment. Norfolk Southern Corporation’s commitment to providing financial relief and support demonstrates its dedication to making amends and helping the community recover. As the settlement moves towards court approval, the affected individuals and businesses can look forward to receiving the compensation they deserve to rebuild their lives and restore their well-being.
