Norfolk Southern reaches $600 million settlement over East Palestine train derailment

Norfolk Southern on Tuesday announced it reached a $600 million settlement in a class action lawsuit brought in response to the February 2023 train derailment in East Palestine, Ohio.

If the court approves the settlement, all class action claims within a 20-mile radius of the derailment and all personal injury claims within a 10-mile radius of the derailment will be resolved, the railroad company said.

Residents within one mile of the derailment were forced to temporarily evacuate after some of the train cars caught fire and there were concerns regarding the hazardous materials being held in 20 of the 50 derailed cars. Officials executed a "controlled release" of the toxic chemicals from the cars in an attempt to avert an explosion. 

However, National Transportation Safety Board chair Jennifer Homendy testified to the Senate last month that "there was no justification to do a vent and burn" of toxic chemicals in the derailed train cars, and that other options were available.

The announcement of the settlement comes after the Environmental Protection Agency said late last week that it is investigating after deceased fish were found in a stream that runs through East Palestine.

Congress is still investigating the derailment and subsequent response efforts. The railroad company also faces lawsuits from the state of Ohio and the Justice Department.

Norfolk Southern said that separately from the settlement, it has already given $104 million in community assistance to East Palestine and the surrounding areas. The company also said it made commitments last year to address resident concerns surrounding drinking water, home prices and healthcare. 

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