Norfolk Southern Corporation has agreed to a $600 million settlement with residents of East Palestine, Ohio, in connection to a train derailment that resulted in toxic chemical exposure and widespread damage to the town last year. The settlement, which is still pending court approval, marks the conclusion of an ongoing legal battle that has lasted for over a year.
On February 3rd, 2023, a Norfolk Southern train carrying hazardous materials derailed on the outskirts of the small town near the Pennsylvania border, spilling more than 10,000 gallons of highly toxic vinyl chloride into the environment and causing significant damage to nearby properties. Several rail cars burned for two days straight, and first responders set off a secondary controlled burn to dispose of additional vinyl chloride to prevent other cars from exploding.
Toxic smoke from the crash site forced many of the town’s 5,000 residents to evacuate from their homes and also affected the nearby areas of Darlington Township and Beaver County. In the aftermath, residents faced health risks and property damage from lingering chemical pollution, sparking outrage and legal action against Norfolk Southern.
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The settlement, announced by Norfolk Southern on Friday, represents a resolution to the class-action lawsuit filed by affected residents. Under the terms of the agreement, Norfolk Southern will pay $600 million to compensate residents for damages related to the derailment, including property damage, medical expenses, and emotional distress.
“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,” Norfolk Southern said.
The statement continued:
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.
Norfolk Southern also expressed regret over the derailment and its consequences, emphasizing its commitment to safety and accountability. However, it does not admit any wrongdoing in the incident.
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The settlement is one of the largest of its kind involving a train derailment, and the $600 million payout to the community will be used to cover healthcare, medical monitoring, property restoration, and diminution, compensation for any net business loss due, and any other loss due to the disaster.
The settlement has been submitted to the US District Court for the Northern District of Ohio for review. Approval is expected later this month.
Connor Walcott is a staff writer for Valuetainment.com. Follow Connor on X and look for him on VT’s “The Unusual Suspects.”
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