Norfolk Southern has reached a settlement in a class-action lawsuit arising from the destructive train derailment in East Palestine, Ohio, as announced on Tuesday by the railroad company.
Under the terms of the agreement, Norfolk Southern will pay $600 million, although it maintains it’s not admitting to any wrongdoing or liability regarding the February 2023 derailment.
The incident involved 38 train cars derailing near the outskirts of East Palestine, close to the Pennsylvania state line. Among these were 11 cars carrying hazardous materials, leading to a large-scale fire that emitted toxic smoke, prompting the evacuation of approximately 2,000 residents out of the town’s total population of 4,900.
Norfolk Southern clarified that the settlement would cover all class-action claims within a 20-mile radius from the derailment site. Additionally, it would address personal injury claims within a 10-mile radius for those residents who opt to participate.
The company stated, “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,” citing possibilities such as healthcare needs, property restoration, and business loss compensation.
Norfolk Southern has already invested over $800 million in extensive environmental cleanup efforts in East Palestine following the incident.
One year post-derailment, the local community remained divided on the best course of action, with lingering concerns about environmental contamination.
Representatives for the plaintiffs’ legal team expressed satisfaction with the settlement, believing it will provide “substantial compensation” to affected residents and businesses. They emphasized the significance of the settlement’s expeditious resolution and the substantial awards expected for impacted parties.
The agreement is subject to approval from a federal judge for the Northern District of Ohio. Plaintiffs’ lawyers anticipate the claims process, which will consider various factors including proximity to the derailment and exposure duration, to commence by the year’s end.
