Norfolk Southern to pay $600M settlement related to train derailment in eastern Ohio

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 company said Tuesday that the agreement, if approved by the court, 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.

Norfolk Southern added that 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, which could include healthcare needs, property restoration and compensation for any net business loss. 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.

The company said that the settlement doesn't include or constitute any admission of liability, wrongdoing, or fault.

The settlement is expected to be submitted for preliminary approval to the U.S. District Court for the Northern District of Ohio later in April 2024. Payments to class members under the settlement could begin by the end of the year, subject to final court approval.

Norfolk Southern has already spent more than $1.1 billion on its response to the derailment, including more than $104 million in direct aid to East Palestine and its residents. Partly because Norfolk Southern is paying for the cleanup, President Joe Biden has never declared a disaster in East Palestine, which is a sore point for many residents. The railroad has promised to create a fund to help pay for the long-term health needs of the community, but that hasn’t happened yet.

Last week federal officials said that the aftermath of the train derailment doesn't qualify as a public health emergency because widespread health problems and ongoing chemical exposures haven't been documented.

The Environmental Protection Agency never approved that designation after the February 2023 Norfolk Southern derailment even though the disaster forced the evacuation of half the town of East Palestine and generated many