Norfolk Southern to pay $600 million in class-action lawsuit settlement
Introduction:
Norfolk Southern has agreed to pay $600 million in a class-action lawsuit settlement related to a fiery train derailment in February 2023 in eastern Ohio. The settlement will resolve all class action claims within a 20-mile radius of the derailment and offer compensation for personal injury claims within a 10-mile radius. Individuals and businesses affected by the derailment will be able to use the compensation in various ways to address any adverse impacts, such as healthcare needs, property restoration, and business losses.
1. Settlement Details
Norfolk Southern reaches a $600 million class-action lawsuit settlement related to a train derailment in Ohio. The agreement, once approved, will address all class action claims within a 20-mile radius and personal injury claims within a 10-mile radius from the incident. Individuals within 10-miles of the derailment can opt to receive additional compensation for past, current, or future personal injury.
2. Disclaimers
The settlement by Norfolk Southern does not constitute an admission of liability, wrongdoing, or fault. It is offering compensation to individuals and businesses within the affected radius to assist in addressing potential impacts from the derailment. The company has already spent over $1.1 billion on its response to the incident, including direct aid to the affected community.
3. Federal Response
Federal officials have stated that the aftermath of the train derailment in East Palestine does not qualify as a public health emergency due to the lack of widespread health problems and ongoing chemical exposures being documented. Despite fears of long-term health consequences from the spilled and burned chemicals, the Environmental Protection Agency did not approve the designation of a public health emergency.
4. Investigation Updates
The National Transportation Safety Board’s investigation into the derailment suggests that an overheating wheel bearing likely caused the crash. The decision to vent and burn the toxic chemical vinyl chloride from tank cars was deemed unnecessary by officials, as the chemical producer assured no dangerous reaction was occurring inside the cars. The full investigation results are expected to be released in June.
5. Cleanup Efforts
The EPA anticipates that the cleanup in East Palestine will be completed later this year. Norfolk Southern has been responsible for funding the cleanup efforts and has faced criticism for delays in addressing the long-term health needs of the community. Despite promises to create a fund to support these needs, the railroad company has not yet implemented the initiative.
Conclusion:
Norfolk Southern’s $600 million settlement in the class-action lawsuit regarding the train derailment in Ohio shows the company’s commitment to addressing the impacts of the incident on the affected community. While the investigation into the cause of the derailment continues, efforts to complete the cleanup and provide support to residents and businesses remain ongoing. The settlement, once approved, will provide compensation to those within the designated radius and serve as a step towards recovery and restoration in the aftermath of the derailment.