Norfolk Southern agrees to pay town of East Palestine $600million a year after ... trends now
Norfolk Southern has agreed to pay $600 million in a class-action lawsuit settlement related to a fiery train derailment in eastern Ohio.
Pending court approval, the agreement would resolve all class action claims within a 20-mile radius from the derailment and, for those residents who choose to participate, personal injury claims within a 10-mile radius from the derailment.
A Norfolk Southern freight train caught fire and released more than a million gallons of hazardous materials and pollutant in the town of East Palestine in February 2023.
The company did not admit liability or wrongdoing, but will provide compensation 'for past, present and future personal injuries resulting from exposure to the chemicals involved', the lawyers bringing the action against Norfolk Southern said in a joint statement.
The settlement is expected to be submitted for preliminary approval to the U.S. District Court for the Northern District of Ohio later in April 2024. Payments under the settlement could begin by the end of the year, subject to final court approval.
Norfolk Southern has agreed to pay $600 million in a class-action lawsuit settlement related to a fiery train derailment in eastern Ohio in February 2023
A Norfolk Southern freight train caught fire and released more than a million gallons of hazardous materials and pollutant in the town of East Palestine
After they were cleared to return, some residents told DailyMail.com that they were still feeling the effects of the toxic runoff
The plaintiffs' attorneys said the deal is the result of a year of intense investigation of the derailment, and should provide meaningful relief to residents.
'This resolution comes shortly after the one-year anniversary of the disaster and will provide substantial compensation to all affected residents, property owners, employees and businesses residing, owning or otherwise having a legal interest in property, working, owning or operating a business for damages resulting from the derailment and release of chemicals,' said Norfolk Southern's lawyers.
The railroad company announced preliminary first-quarter earnings of 23 cents per share Tuesday to reflect the impact of the settlement.
Norfolk Southern CEO Alan Shaw, who received a 37 percent pay raise in 2023, said the company is 'becoming a more productive and efficient railroad. There is still more work to be done to achieve industry-competitive margins.'
Last year, Norfolk Southern agreed to compensate homeowners around East Palestine, Ohio who have had to sell their properties at a reduced value.
They have already spent more than $1.1 billion on its response to the derailment - which forced almost half the town's population to evacuate - including more than $104 million in direct aid to East Palestine and its residents.
Last week federal officials said that the aftermath of the train derailment doesn't qualify as a public health emergency because widespread health problems and ongoing chemical exposures have not been documented.
The Environmental Protection Agency never approved that designation after the February 2023 Norfolk Southern derailment even though the disaster forced the evacuation of half the town of East Palestine and generated many fears about potential long-term health consequences of the chemicals that spilled and burned.
Contamination concerns were exacerbated by the decision to blow open five
