Norfolk Southern announces preliminary $600 million agreement focused on settling East Palestine derailment lawsuit

Atlanta-based Class I railroad carrier Norfolk Southern (NS) said earlier today it came to terms on a $600 million agreement in principle, for a class action lawsuit related to the February 2023 East Palestine, Ohio derailment.

NS officials said that should this agreement be approved by the court, it 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 agreement is designed to provide finality and flexibility for settlement class members,” said NS. “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. This could include healthcare needs and medical monitoring, property restoration and diminution, and compensation for any net business loss. In addition, individuals within 10-miles of the derailment may, at their discretion, choose to receive additional compensation for any past, current, or future personal injury from the derailment.”

What’s more, NS said that this agreement does not include or constitute any admission of liability, wrongdoing, or fault, adding that it was reached through extensive negotiations with court-appointed class counsel and with the expert assistance of former federal district judge Layn Phillips, a nationally renowned neutral mediator. Looking ahead, NS said that the agreement is expected to be submitted for preliminary approval to the U.S. District Court for the Northern District of Ohio later this month.

And Norfolk Southern also said that it has made various contributions “to make it right in East Palestine and the surrounding communities,” including:

• $104 million in community assistance to East Palestine and the surrounding areas in Ohio and Pennsylvania, including $25 million for a regional safety training center, $25 million in planned improvements to East Palestine's city park, $21 million in direct payments to residents, and $9 million to local first responders;
• $4.3 million to support upgrades to drinking water infrastructure;
• $2 million for community-directed projects;
• $500,000 grant for economic development; and
• Ongoing support to the community through the Family Assistance Center and programs such as the Interim Value Assurance Program

On February 3, 2023, an NS train derailed in East Palestine, Ohio. The National Safety Transportation Board (NTSB) said in a February 14, 2023 update that as a result of the derailment, 38 rail cars derailed and a fire ensued, which damaged an additional 12 cars, adding that there were 20 total hazardous material cars in the train—11 of which derailed. And on February 23, 2023, in its preliminary report, it said that surveillance video from a local residence showed what appeared to be a wheel bearing in the final stage of overheat failure moments before the derailment. It added that the wheel bearing and affected wheelset were collected as evidence to be examined by the NTSB.