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Norfolk Southern Reaches $600 Million Settlement in East Palestine Derailment Suit

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Norfolk Southern Reaches $600 Million Settlement in East Palestine Derailment Suit

by Sandra Rhodes
April 9, 2024
in News
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Norfolk Southern Reaches $600 Million Settlement in East Palestine Derailment Suit

EAST PALESTINE, OH - FEBRUARY 23: U.S. Secretary of Transportation Pete Buttigieg (2L) visits with Department of Transportation Investigators at the site of the derailment on February 23 2023 in East Palestine, Ohio. Below where he stands is a pile of ash. On February 3rd, a Norfolk Southern Railways train carrying toxic chemicals derailed causing an environmental disaster. Thousands of residents were ordered to evacuate after the area was placed under a state of emergency and temporary evacuation orders (Photo by Brooke LaValley-Pool/Getty Images)

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Norfolk Southern officials do not admit to doing anything wrong regarding the train derailment that shrouded East Palestine, Ohio, in a plume of toxicity, but it is willing to pay $600 million to settle several class-action lawsuits.

The settlement, which needs to be approved by a court will resolve all class-action lawsuits within 20 miles of the derailment, CNN reported.

More than a million pounds of hazardous chemicals were released into the soil, water and air, which sent residents and businesses to seek shelter elsewhere.

“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,” the company said in a statement. “This could include healthcare needs and medical monitoring, property restoration and diminution, and compensation for any net business loss.”

The settlement will allow residents within 10 miles of the derailment to receive more compensation, per CNN.

The plaintiffs in the matter said in a filing Tuesday that they anticipate filing a motion for the judge’s approval in 10 days. They also hope to start sending payments for claims by the end of the year.

“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,” said Seth Katz of Burg Simpson Eldredge Hersh & Jardine, M. Elizabeth Graham of Grant & Eisenhofer, Jayne Conroy of Simmons Hanly Conroy and T. Michael Morgan of Morgan & Morgan, in a combined statement.

The Norfolk Southern freight train derailed on Feb. 3, 2023, leading to evacuations. State and federal environmental officials now say testing shows the air and water in the town is safe. However some residents still complain of health issues.

The settlement payout isn’t the only thing the railroad company has paid — or will pay.

Norfolk Southern has spent “$104 million in community assistance to East Palestine and the surrounding areas, $4.3 million to upgrade the area’s drinking water infrastructure and $500,000 for economic development, among other contributions,” CNN reported. 

Some still believe that what Norfolk Southern has done is not enough. This includes taking care of the toxic chemicals. They also say the railroad company was negligent.

The EPA has made Norfolk Southern remediate a stream and determine a better plan after it was determined “deceased fish were observed by response staff in a sulfur run during routine stream monitoring” on April 5.

“The investigation determined that the fish were killed when swimming through pumps that are diverting water out of the sulfur run,” CNN reported

Tags: East palestine train derailmentNorfolk SouthernSettlementU.S. News
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Sandra Rhodes

Sandra Rhodes

IJR, Contributor Writer She was a Story Editor for Indpendent Journal Review since November 2022 and has written for IJR since February 2024. She has been in the newspaper business in various capacities since 1998.

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