Norfolk Southern reaches $600 million settlement for East Palestine train derailment lawsuit

The deal aims to compensate residents and businesses affected by the toxic chemical release.

Norfolk Southern reaches $600 million settlement for East Palestine train derailment lawsuit
Columbiana County Commissioner's Office/NTSB via AP, File
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Train operator Norfolk Southern announced on Tuesday that it has reached a $600 million agreement in principle to settle a class-action lawsuit related to the massive derailment in East Palestine, Ohio, last year. The incident led to the release of toxic chemicals into the air, causing widespread economic and environmental damage.

The Atlanta-based company stated that the settlement, which still requires court approval, is part of its commitment to "make it right for the people of East Palestine and the surrounding communities." If approved, the agreement will resolve all class action claims within a 20-mile radius from the derailment site and, for participating residents, personal injury claims within a 10-mile radius, the Daily Wire reported.

Norfolk Southern emphasized that the comprehensive settlement goes beyond the initial agreement, providing additional significant monetary relief to individuals for healthcare and to help qualifying local businesses rebuild and grow. The agreement is designed to offer finality and flexibility for settlement class members, allowing them to use the compensation in any manner they see fit to address potential adverse impacts from the derailment.

Funds from the settlement could be used for healthcare, medical monitoring, property restoration and diminution, compensation for net business losses, and any other losses resulting from the disaster.

Following the February 2023 derailment, responders opened several train cars and burned the vinyl chloride chemicals inside, releasing toxic fumes into the area. The chemicals were burned due to concerns that the train cars could explode. However, National Transportation Safety Board Chair Jennifer Homendy stated last month that the burn was not justified.

Norfolk Southern clarified that the settlement does not constitute an admission of wrongdoing or fault. Former federal district judge Layn Phillips assisted in mediating the negotiations.

The railway company is also facing a separate lawsuit from the Department of Justice and the Environmental Protection Agency, which seeks to compel Norfolk Southern to pay for the entire disaster cleanup. Attorney General Merrick Garland emphasized that the complaint aims to pursue justice for East Palestine residents and ensure that Norfolk Southern bears the financial burden for the harm it has caused and continues to inflict on the community.

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