The company has ’made commitments to address three long-term concerns of residents: drinking water, home values, and healthcare.’
Norfolk Southern Corporation announced on Tuesday it has reached a $600 million agreement to resolve a class action lawsuit related to the 2023 derailment in East Palestine, Ohio.
The settlement comes in the wake of the Feb. 3, 2023 incident in which a Norfolk Southern Railway freight train carrying 151 cars derailed, spilling hazardous chemicals, including vinyl chloride, onto the ground and into the air.
Burning vinyl chloride also produces a small amount of phosgene gas, which was used as a chemical weapon on World War I battlefields. When 38 of the rail cars derailed, a fire ensued, damaging an additional 12 cars.
Of the 20 cars carrying hazardous materials, 11 derailed, according to the National Transportation Safety Board.
“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,” the company said in a press release Tuesday. “This is another promise kept by Norfolk Southern to make it right for the people of East Palestine and the surrounding communities.”
The company added that in the year since the incident, they have “made commitments to address three long-term concerns of residents: drinking water, home values, and healthcare.”
They have begun some programs to remedy drinking water and home value concerns, and stated that the settlement will provide “additional, significant monetary relief to individuals, including for healthcare, and to help qualifying local businesses continue to rebuild and grow.”
More on Settlement Agreement
Notably, the settlement agreement according to the company “does not include or constitute any admission of liability, wrongdoing, or fault.”
They noted the settlement was reached through “extensive negotiations” with court-appointed class counsel and a mediator.
It is expected to be submitted for preliminary approval by the U.S. District Court for the Northern District of Ohio later this month, with payments beginning by the end of the year, pending court approval.
By Chase Smith
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