Norfolk Southern agrees to $600M settlement for Ohio train derailment

Over a year after a Norfolk Southern train derailment resulted in a fiery explosion in East Palestine, Ohio, the railroad reached a preliminary agreement for a $600 million settlement on Tuesday, April 9. However, a judge will need to approve and sign the lawsuit.

“If approved by the court, the agreement 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,” a Norfolk Southern press release said.

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The agreement notably does not entail any admission of wrongdoing, liability or fault from the railway.

In February of 2023, 38 cars of a Norfolk Southern train derailed in East Palestine, triggering a massive fire and releasing more than a million gallons of toxic materials, including vinyl chloride.

Approximately 5,000 residents reside in the area, many of whom have voiced concerns regarding the potential impacts of the derailment on their health, property values and businesses. The Environmental Protection Agency (EPA) has affirmed that air and water in the small eastern Ohio city are safe after conducting multiple tests.

To date, Norfolk Southern has disclosed paying $104 million to assist the East Palestine community, along with an additional $4 million allocated to upgrade drinking water infrastructure, $2 million for community projects and $500,000 for economic development.

The railway has stated that if the court approves the settlement, “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,” including for health care-related matters or property restoration.

The crash site remains under investigation, with Norfolk Southern expecting cleanup efforts to conclude sometime this summer.