Norfolk Southern agrees to $600 million deal on East Palestine derailment
If approved by court, agreement would resolve class action lawsuit by local residents.
Fourteen months after one of its freight trains derailed near East Palestine, Ohio, spilling toxic chemicals into the air, water, and soil, Norfolk Southern Corp. said it has reached a $600 million agreement to resolve a class action lawsuit by local residents.
If approved by the court, the agreement will 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, the Atlanta-based railway said.
According to the company, it made commitments in March 2023 to address three long-term concerns of residents—drinking water, home values, and healthcare—and it has already announced programs for the first two. Today’s agreement provides additional monetary relief to individuals, including for healthcare, and to help qualifying local businesses continue to rebuild and grow.
It is expected to be submitted for preliminary approval to the U.S. District Court for the Northern District of Ohio later in April 2024. Subject to final court approval, payments to class members under the settlement could begin by the end of this year.