Norfolk Southern on Tuesday announced it agreed to pay $600 million to settle a class action lawsuit related to the derailment of a freight train in East Palestine, Ohio, on Feb 3, 2023.
The rail operator said in a press release that the settlement marks “another promise kept by Norfolk Southern to make it right for the people of East Palestine and the surrounding communities.”
The settlement, if approved by the court, will resolve all class action claims within a 20-mile radius from the derailment, and personal injury claims within a 10-mile radius of the derailment, the company said.
“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,” the company said.
“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,” the company said.
Norfolk Southern said that in addition to the settlement, it has already paid more than $100 million in contributions to East Palestine and the surrounding communities 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; $9 million to local first responders; $4.3 million to support upgrades to drinking water infrastructure; and $2 million for community-directed projects.
The train that derailed off Taggart Street last year was carrying hazardous materials including vinyl chloride and butyl acrylate, which were burned off, producing a toxic cloud. The chemicals have known adverse health effects including respiratory problems, and prolonged exposure can cause cancer.
During a Senate hearing last month, National Transportation Safety Board Chair Jennifer Homendy testified that the controlled burn of the hazardous chemicals at the derailment site was unnecessary.
She said that Oxy Vinyls, the company shipping the chemicals, advised Norfolk Southern that a controlled burn was not needed because the tank cars had already begun to cool. But when Gov. Mike DeWine and the incident commander were deciding whether to vent and burn the chemicals, Oxy Vinyls’ experts were “left out of the room” and officials were given incomplete information.
Story via TMX