Norfolk Southern Settles Ohio Derailment Lawsuit: Check Details Here
Norfolk Southern Settles Ohio Derailment Lawsuit: After the East Palestine derailment, Norfolk Southern settled a class action lawsuit for $600 million.
If the court approves, class action and personal injury claims will be resolved within a 10-mile radius of the derailment.
Individuals and businesses will be compensated for the potential negative effects of the derailment.
Within 10 miles of the derailment, individuals may choose to receive additional compensation for any past, current, or future personal injury.
Near the Pennsylvania state line, about 50 cars of a freight train carrying hazardous materials derailed near East Palestine, with some of the cars transporting hazardous materials. Around 1,500 to 2,000 of the town’s 4,800 to 4,900 residents were evacuated.
There is no admission of liability, wrongdoing, or fault in the settlement, the company said.
BREAKING: Norfolk Southern agrees to pay $600M in settlement related to train derailment in eastern Ohio https://t.co/AizMCEYVKz
— The Associated Press (@AP) April 9, 2024
The settlement was reached after extensive negotiations with court-appointed class counsel and mediation by former federal district judge Layn Phillips.
Payments to class members under the settlement could begin by the end of the year if court approval is granted. The settlement will be presented for preliminary approval to the U.S. District Court for the Northern District of Ohio later in April.
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Over $100 million in direct aid has already been provided to East Palestine and its residents by Norfolk Southern in response to the derailment.
The president has never declared a disaster in East Palestine due to Norfolk Southern’s responsibility for cleanup, which is a sore point for many residents.
Residents will receive meaningful relief as a result of the deal, according to plaintiffs’ attorneys.
“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 for the plaintiffs said in a statement
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To reflect the impact of the settlement, the railroad announced preliminary first-quarter earnings of 23 cents per share on Tuesday.
While volume grew by 4% during the quarter, revenue fell by 4% due to lower fuel surcharge revenue and changes in shipment mix.
Despite forcing half the town of East Palestine to evacuate in February 2023 because of the Norfolk Southern derailment and raising concerns about the potential long-term health consequences of the chemicals spilled and burned, the Environmental Protection Agency never approved that designation.
Three days after the derailment, five tank cars filled with vinyl chloride were blown open and burned, further increasing contamination concerns.
Before Tuesday’s opening bell, Norfolk Southern Corp. shares fell about 1.3%.
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