Norfolk Southern reaches $600M settlement more than a year after Ohio train derailment
Norfolk Southern has agreed to a $600 million settlement to resolve class action lawsuits filed after a freight train derailed in East Palestine, Ohio, spilling toxic chemicals into the community.
The company said in a news release Tuesday that the settlement "is another promise kept by Norfolk Southern to make it right for the people of East Palestine and the surrounding communities."
"The agreement is designed to provide finality and flexibility for settlement class members. Individuals and businesses will be able to use compensation from the settlement in any manner they see fit to address potential adverse impacts from the derailment," Norfolk Southern said.
"This could include healthcare needs and medical monitoring, property restoration and diminution, and compensation for any net business loss," the company continued. "In addition, individuals within 10-miles of the derailment may, at their discretion, choose to receive additional compensation for any past, current, or future personal injury from the derailment."
On Feb. 3, 2023, just before 9 p.m. local time, 38 cars of a freight train derailed off Taggart Street. The cars were carrying cargo that included hazardous materials such as vinyl chloride and butyl acrylate, which are known to cause adverse health effects including respiratory irritation and even certain cancers with prolonged exposure.
Residents within a roughly 1-mile radius had to temporarily evacuate. Days after the spill and fire, the rail company did a controlled chemical release and burned vinyl chloride — a flammable gas — in a move officials said would alleviate the risk of an explosion.
Class-action lawsuits swiftly followed. For the most part, residents sued over lost income due to the evacuation and health concerns. Despite Norfolk Southern and the Environmental Protection Agency saying that the town’s water was safe to drink, some residents told "NBC Nightly News" earlier this year that they run air purifiers daily in their homes and only drink bottled water.
In a court filing Tuesday, attorneys for the plaintiffs said they expect to file a motion for the judge to approve the amount no later than April 19.
"We believe this is a fair, reasonable and adequate result for the community on a number of levels, not the least of which is the speed of the resolution, and the overall amount of the awards residents can expect, which will be significant for those most impacted by the derailment," attorneys Seth A. Katz, M. Elizabeth Graham, Jayne Conroy and T. Michael Morgan said in a joint statement.
In addition to the settlement, Norfolk Southern said it has spent $104 million in community assistance to East Palestine and the surrounding areas, $4.3 million to help upgrade the drinking water infrastructure, and $500,000 for economic development.
