Norfolk Southern Reaches Agreement in Principle to Settle East Palestine Derailment Class Action

Norfolk Southern Corporation announced Tuesday that it has reached a $600 million agreement in principle to resolve a consolidated class action lawsuit relating to the East Palestine derailment. 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.

This is another promise kept by Norfolk Southern to make it right for the people of East Palestine and the surrounding communities. In March 2023, the company made commitments to address three long-term concerns of residents: drinking water, home values, and healthcare. Already, the company has announced programs for drinking water and home value assurance. The company is going further through this comprehensive settlement—providing additional, significant monetary relief to individuals, including for healthcare, and to help qualifying local businesses continue to rebuild and grow.

The agreement is designed to provide finality and flexibility for settlement class members.  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. This could include healthcare needs and medical monitoring, property restoration and diminution, and compensation for any net business loss. In addition, individuals within 10-miles of the derailment may, at their discretion, choose to receive additional compensation for any past, current, or future personal injury from the derailment.

This settlement furthers the work Norfolk Southern has done to make it right in East Palestine and the surrounding communities. In addition to this settlement, Norfolk Southern has made contributions including:

  • $104 million in community assistance to East Palestine and the surrounding areas in Ohio and Pennsylvania, including $25 million for a regional safety training center, $25 million in planned improvements to East Palestine’s city park, $21 million in direct payments to residents, and $9 million to local first responders;
  • $4.3 million to support upgrades to drinking water infrastructure;
  • $2 million for community-directed projects;
  • $500,000 grant for economic development; and
  • Ongoing support to the community through the Family Assistance Center and programs such as the Interim Value Assurance Program.

-via Press Release

This article was posted on: April 9, 2024