Norfolk Southern To Pay $600M In Settlement Over Derailment

A $600 million settlement has been reached between Norfolk Southern and residents affected by the February 2023 train derailment in East Palestine, Ohio. The derailment caused a fire and spilled hazardous chemicals, leading to evacuations and concerns about long-term health.

Settlement Details:

The agreement, if approved by the court, will offer compensation to residents, property owners, businesses, and employees within a 20-mile radius for damages related to the incident. Additionally, individuals living within 10 miles of the derailment can seek additional compensation for any past, current, or future personal injuries potentially caused by the event. It's important to note that this settlement does not constitute an admission of wrongdoing by Norfolk Southern.

Derailment and Impact:

The incident involved the derailment of 38 cars from a Norfolk Southern train, with 11 of those cars carrying hazardous chemicals that subsequently caught fire. Up to 2,000 residents were forced to evacuate due to the fire and chemical release. The release of hazardous materials like vinyl chloride raised significant concerns about potential long-term health effects for residents, though no public health emergency was declared.

Norfolk Southern's Additional Actions:

Beyond the settlement, Norfolk Southern has already provided $104 million in community assistance to East Palestine and surrounding areas. This includes funds allocated for a regional safety training center, park improvements, direct resident support, and first responders.

The settlement awaits court approval, and the National Transportation Safety Board's final investigation report is expected this summer. A preliminary finding from the NTSB points to a faulty wheel bearing as the likely cause of the derailment.