Norfolk Southern has reached a $600 million settlement agreement in the class-action lawsuit against the railway operator concerning the catastrophic 50-car February 2023 derailment in East Palestine, Ohio, near the Pennsylvania state line.
The accident, which caused a fireball that released toxic and carcinogenic substances from multiple cars, forced authorities to evacuate homes and businesses within two miles of the site. Numerous health and safety concerns over the following months prompted significant federal assistance, as well as nationwide calls for investigation and legal reform after the state of Ohio filed a federal lawsuit against Norfolk Southern citing 58 counts of state and federal regulatory violations, lapses in safety, and reckless endangerment of East Palestine’s approximately 5000 residents. An accident report compiled by the National Transportation Safety Board cited preventable operational safety issues, namely lax temperature monitoring procedures (which are not federally regulated), underlying the wheel bearing failure that led to the derailment.
The proposed $600 million resolution follows a total of $104 million in direct financial aid previously contributed by Norfolk Southern. A review of the settlement by the U.S. District Court for the Northern District of Ohio is expected later this month; if approved, 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,” according to a statement by Norfolk Southern, which also made it clear that the settlement is not an admission of fault or company liability. Payout of the settlement could begin by the end of 2024, to be used directly by local residents and businesses to flexibly address lingering costs of the disaster.
Federal response to the derailment sparked controversy after work crews opened and burned five cars containing the toxic industrial chemical vinyl chloride in order to dissipate the substance, a decision evidently made due to a failure to communicate between the chemical supplier and those on-site. The Environmental Protection Agency said in a recent statement that they are unable to classify the derailment as a public health emergency, as no long-term health and safety issues have been documented. Nevertheless, East Palestine residents displaced by the accident have reported numerous illnesses and chronic ailments that many believe are related to the toxic spills; some individuals and families told reporters at ABC News that they continue to experience rashes, muscle pain, hair loss, and other symptoms, and that they do not feel safe returning to their former homes. Blood samples from residents have revealed traces of toxins and harmful substances originating from the derailed train, including vinyl chloride and benzene.
Legal counsel working on behalf of Norfolk Southern called the proposed settlement “substantial” and extolled the rapid resolution. The EPA expects the cleanup process in East Palestine to conclude this year.
