Norfolk Southern agrees to $600M class-action settlement in East Palestine train derailment case
Rail operator Norfolk Southern said Tuesday that it had reached a $600 million class-action settlement over the East Palestine, Ohio, train derailment in February 2023.Why it matters: The disaster sparked concerns about hazardous chemicals injuring residents on the Ohio-Pennsylvania border and called attention to Norfolk Southern's safety record.Between the lines: The company said the deal "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.""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," Norfolk Southern added in a statement.Catch up quick: Train cars carrying at least five different types of chemicals were involved in the Feb. 3, 2023, derailment, Axios' Jacob Knutson reported.After the derailment, the company released and burned vinyl chloride, a colorless but hazardous and carcinogenic gas used to produce PVC plastic and vinyl products, from five tanker cars because of an explosion risk.No one was injured in the crash, but images of smoke billowing into the air caused widespread concern about health issues.The Environmental Protection Agency ordered Norfolk Southern to clean up the contamination at the site.How it works: The company said Tuesday that it reached the settlement after talks with plaintiffs' attorneys mediated by the court-appointed Layn Phillips, a former federal judge. A sitting federal judge in northern Ohio will need to approve the deal for it to be finalized. "The actual allocations and payments to households, businesses, and individuals will be determined by court-appointed class counsel," Norfolk Southern said. The company said the settlement adds to the $104 million in community assistance it's already provided to East Palestine and the surrounding areas, ranging from $25 million for a "regional safety training center" to $21 million in "direct payments to residents."What they're saying: The deal "will provide substantial compensation to all affected residents, property owners, employees and businesses residing, owning or otherwise having a legal interest in property, working, owning or operating a business for damages resulting from the derailment and release of chemicals," several attorneys involved in the case said in a statement, Cleveland19.com reported. Caveat: The company is not acknowledging any wrongdoing or admitting liability.
Rail operator Norfolk Southern said Tuesday that it had reached a $600 million class-action settlement over the East Palestine, Ohio, train derailment in February 2023.Why it matters: The disaster sparked concerns about hazardous chemicals injuring residents on the Ohio-Pennsylvania border and called attention to Norfolk Southern's safety record.Between the lines: The company said the deal "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.""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," Norfolk Southern added in a statement.Catch up quick: Train cars carrying at least five different types of chemicals were involved in the Feb. 3, 2023, derailment, Axios' Jacob Knutson reported.After the derailment, the company released and burned vinyl chloride, a colorless but hazardous and carcinogenic gas used to produce PVC plastic and vinyl products, from five tanker cars because of an explosion risk.No one was injured in the crash, but images of smoke billowing into the air caused widespread concern about health issues.The Environmental Protection Agency ordered Norfolk Southern to clean up the contamination at the site.How it works: The company said Tuesday that it reached the settlement after talks with plaintiffs' attorneys mediated by the court-appointed Layn Phillips, a former federal judge. A sitting federal judge in northern Ohio will need to approve the deal for it to be finalized. "The actual allocations and payments to households, businesses, and individuals will be determined by court-appointed class counsel," Norfolk Southern said. The company said the settlement adds to the $104 million in community assistance it's already provided to East Palestine and the surrounding areas, ranging from $25 million for a "regional safety training center" to $21 million in "direct payments to residents."What they're saying: The deal "will provide substantial compensation to all affected residents, property owners, employees and businesses residing, owning or otherwise having a legal interest in property, working, owning or operating a business for damages resulting from the derailment and release of chemicals," several attorneys involved in the case said in a statement, Cleveland19.com reported. Caveat: The company is not acknowledging any wrongdoing or admitting liability.
Rail operator Norfolk Southern said Tuesday that it had reached a $600 million class-action settlement over the East Palestine, Ohio, train derailment in February 2023.
Why it matters: The disaster sparked concerns about hazardous chemicals injuring residents on the Ohio-Pennsylvania border and called attention to Norfolk Southern's safety record.
Between the lines: The company said the deal "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."
- "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," Norfolk Southern added in a statement.
Catch up quick: Train cars carrying at least five different types of chemicals were involved in the Feb. 3, 2023, derailment, Axios' Jacob Knutson reported.
- After the derailment, the company released and burned vinyl chloride, a colorless but hazardous and carcinogenic gas used to produce PVC plastic and vinyl products, from five tanker cars because of an explosion risk.
- No one was injured in the crash, but images of smoke billowing into the air caused widespread concern about health issues.
- The Environmental Protection Agency ordered Norfolk Southern to clean up the contamination at the site.
How it works: The company said Tuesday that it reached the settlement after talks with plaintiffs' attorneys mediated by the court-appointed Layn Phillips, a former federal judge.
- A sitting federal judge in northern Ohio will need to approve the deal for it to be finalized.
- "The actual allocations and payments to households, businesses, and individuals will be determined by court-appointed class counsel," Norfolk Southern said.
- The company said the settlement adds to the $104 million in community assistance it's already provided to East Palestine and the surrounding areas, ranging from $25 million for a "regional safety training center" to $21 million in "direct payments to residents."
What they're saying: The deal "will provide substantial compensation to all affected residents, property owners, employees and businesses residing, owning or otherwise having a legal interest in property, working, owning or operating a business for damages resulting from the derailment and release of chemicals," several attorneys involved in the case said in a statement, Cleveland19.com reported.
Caveat: The company is not acknowledging any wrongdoing or admitting liability.