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Norfolk South has reached an agreement of 600 million dollars which, if approved by a court, will resolve all lawsuits covering thousands of residents within a 20-mile radius by 2023 Derailment in East Palestine, Ohio, spilling more than one million pounds of hazardous chemicals into the ground, water, and air.
The railroad company said the settlement is intended to offset costs related to the spill that sent a plume of toxic smoke into the air and displaced many residents and businesses. But Norfolk Southern did not admit any liability or wrongdoing as a result of the settlement.
"Individuals and companies will be able to use the settlement compensation in any way they see fit to address the potential adverse impacts of the derailment," the company said in a statement. โThis could include healthcare needs and medical follow-up, property restoration and diminution, and compensation for any net business losses.โ
The class action settlement, which covers 31 separate cases, also allows residents within a 10-mile radius of the derailment to receive additional compensation.
In a court filing Tuesday, the plaintiffs said they expected to file a motion to have the judge approve the settlement within 10 days. Attorneys representing claimants said they hope to make the claims process easy and efficient and begin sending payments by the end of 2024.
โWe believe this is a fair, reasonable and appropriate outcome for the community on several levels, including the speed of resolution and the total amount of compensation residents can expect, which will be significant for those most affected by the derailment.โ โ said Seth Katz of Burg Simpson Eldredge Hersh & Jardine, M. Elizabeth Graham of Grant & Eisenhofer, Jayne Conroy of Simmons Hanly Conroy and T. Michael Morgan of Morgan & Morgan, in a combined statement.
Following the derailment of the Norfolk Southern freight train on February 3, 2023, residents were ordered to temporarily evacuate. State and federal environmental officials say testing shows the The air and water in the city are now safe.but some residents still complain about health problemsincluding burning sensations in the eyes, tingling in the lips, heaviness in the chest, and swelling of the lymph nodes in the neck and groin.
Since then, the company says it has spent $104 million on community assistance to East Palestine and surrounding areas, $4.3 million to improve the area's drinking water infrastructure and $500,000 for economic development, among others. contributions. Eastern Palestine has a population of 5,000 inhabitants.
But several class action lawsuits say the company has not done enough to remediate toxic chemicals released in the area. They also blamed Norfolk Southern for negligence.
He The latest update from the EPA on the aftermath of the derailment notes that among several changes in the region's environment, โresponders observed deceased fish in a sulfur run during routine stream monitoringโ on April 5. The investigation determined that the fish died while swimming through pumps that are diverting water from the sulfur flow, and the EPA required Norfolk Southern to remedy the flow and determine a better plan.
Among the questionable decisions the company made was a massive, controlled burn that released toxic chemicals into the air three days after the derailment. The railway company said there was an imminent risk of an uncontrolled explosion if the chemicals were not released and burned. Officials on the ground who authorized the controlled burn were told they had only minutes to make the decision before an explosion.
But the chairman of the National Transportation Safety Board testified last month at a Senate hearing that the controlled burning was unnecessary.
Norfolk Southern Stock (NSC) fell 1.5%.
This story has been updated with additional context and developments.
