U.S. railroad operator Norfolk Southern will pay $600 million to settle a class action lawsuit over a February 2023 train derailment in East Palestine, Ohio, that spilled toxic chemicals, the company and court documents say. agreed.
The agreement, which in principle still needs court approval, would also cover claims from residents and businesses in the city, as well as those that affect the surrounding area.
Lawyers filing the lawsuit against Norfolk Southern said in a joint statement that they will also provide compensation for “past, present, and future personal injuries resulting from exposure to the chemicals involved.”
The train caught fire, releasing more than 1 million gallons of hazardous materials and pollutants, raising concerns about the safety of U.S. railroads.
Jane Conroy, lead class attorney, said the proposed settlement is “by far the largest of any derailment settlement in the United States.”
According to court documents, the agreement will resolve all class action lawsuits within a 20-mile radius of the derailment and, for residents who choose to participate, personal injury lawsuits will also be resolved within a 10-mile radius.
Conroy estimates that there are just under 100,000 collective members eligible to receive funding from the settlement, including up to 25,000 people living within 10 miles of the crash site and those living within 20 miles. This includes approximately 72,000 people living in the area.
Norfolk Southern has not admitted liability or wrongdoing.
Some details still need to be finalized, including setting up the allocation formula and how to efficiently process claims and distribute funds. Lawyers suing Norfolk Southern say they hope to receive the first payment by the end of 2024.
Lawyers say compensation claims will take into account factors such as location relative to the derailment, household composition, length of evacuation and exposure to pollutants.
Last year, the city of Norfolk Southern agreed to compensate homeowners forced to sell their properties for reduced prices in the East Palestine, Ohio, neighborhood.
In addition to the class action lawsuit, Norfolk Southern also faces lawsuits brought by shareholders, the state of Ohio, and the Department of Justice.
A Senate committee approved bipartisan rail safety legislation in May 2023 that would tighten regulations for trains that transport explosives, such as those operated by Norfolk Southern, but further action has stalled.
