Norfolk Southern agrees to $600 million settlement for East Palestine train derailment

The company whose freight train derailed in East Palestine, Ohio last year, causing a massive chemical spill, has reached a $600 million settlement with residents.

Norfolk Southern announced Tuesday that it has reached an agreement in principle to resolve a class action lawsuit filed by residents and businesses affected by the derailment. If accepted by the court, the settlement would include payments to community members and a voluntary agreement that would compensate individuals for past, present and future injuries caused by exposure to toxic chemicals, plaintiffs’ attorneys said. It also includes programs.

“This is another one of Norfolk Southern’s commitments to doing what’s right for the people of East Palestine and surrounding communities,” the company said in a statement.

The settlement agreement will resolve all class action claims within a 20-mile radius of the derailment and personal injury claims within a 10-mile radius.

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This comes after Norfolk Southern has already committed more than $100 million in regional aid to East Palestine and surrounding areas in Ohio and Pennsylvania.

“This resolution comes shortly after the one-year anniversary of the disaster, and all affected residents, property owners, employees, and those who live, own, or have a legal interest in property, work, “It provides significant compensation to any company that owns or operates a business for damages caused by a derailment and chemical release,” said plaintiffs attorneys Seth Katz and Elizabeth Graham. , Attorneys Jane Conroy and T. Michael Morgan said.

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This video screenshot released by the US National Transportation Safety Board (NTSB) shows the scene of a freight train derailing in East Palestine, Ohio. Approximately 50 Norfolk Southern freight trains derailed on the night of February 3rd. (NTSB/Handout via Xinhua News Agency/Getty Images)

“We thank Judge Benita Pearson for her diligence and guidance in overseeing the litigation and for holding the parties to strict deadlines to reach a resolution or prepare the case for trial.” added the lawyers.

The Norfolk Southern Railroad derailment on the Ohio-Pennsylvania border on February 3, 2023, released millions of gallons of toxic chemicals into the environment.

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A balloon is placed next to a sign with information for residents to take an air quality test from Norfolk Southern Railroad on February 16, 2023 in East Palestine, Ohio. Norfolk Southern Railroad train loaded with toxic chemicals on February 3rd (Michael Swensen/Getty Images/Getty Images)

The disaster caused many residents on both sides of the border to flee their homes and suffer from various illnesses. The Atlanta-based railroad has been making payments to residents who were forced to relocate, but announced in December that financial aid would end on Feb. 9.

So far, Norfolk South has committed $104 million to East Palestinian communities, including $21 million in direct payments to residents and $50 million in investment in the area over the next 10 years. It is included.

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The company released preliminary financial results for the first quarter of 2024 on Tuesday, announcing operating revenue of $3 billion. The report said the settlement agreement and other costs increased operating expenses by $691 million.

Norfolk Southern Airlines previously reported that it took a $1.1 billion hit last year due to costs stemming from the incident, but still made a profit of $2.9 billion.

Norfolk Southern Corporation stock fell 1.27% in pre-market trading Tuesday morning.

FOX Business’ Breck Dumas, Louis Casiano and Reuters contributed to this report.