Norfolk Southern Agrees to Pay $600 Million in Settlement Related to Train Derailment in East Palestine, Ohio
Norfolk Southern has agreed to pay $600 million in a class action lawsuit settlement for the 2023 train derailment in Ohio. Residents fear though that the money will not be enough to cover future health needs when actually divvied up. More than three dozen of the train’s 149 cars derailed near East Palestine, Ohio, a town with almost 5,000 residents near the Pennsylvania border. Some of the cars spilled a mix of hazardous materials that caught fire. Officials were worried about an explosion, so they blew open five tank cars filled with vinyl chloride and burned the toxic chemical. This sent plumes of black smoke into the air, leading to 1,500 to 2,000 residents needing to be evacuated.
Norfolk Southern claims the agreement will resolve all class action claims within a 20-mile radius of the derailment and personal injury claims within a 10-mile radius for those that choose to participate. The area includes East Palestine and people who evacuated in addition to other several large towns. The settlement does not include an admission of liability, wrongdoing, or fault. It is only a small percentage of the $3 billion in revenue that Norfolk Southern generated in the first three months of the year.
Even one year after the derailment occurred residents still complain about respiratory problems and unexplained rashes and nosebleeds. The bigger fear though is exposure to the harsh chemicals can lead to cancer. Researchers are now looking to determine the lasting repercussions of the derailment. The company said Tuesday that individuals will be able to use the settlement funds in any way they see fit. It is expected that the settlement will be submitted for preliminary approval to the U.S. District Court for the Northern District of Ohio this month. There is potential for payments to arrive by the end of the year if the court approves.
Norfolk Southern has spent more than 1.1 billion on its response to the derailment. This includes $104 million in direct aid to East Palestine and its residents. Joe Biden never declared a disaster in the town due to Norfolk Southern paying for the cleanup, which bothered many people. The railroad has promised to create a fund to pay for the long-term health needs of the community, but this has not been finalized.
Federal officials claim that the train derailment does not qualify as a public health emergency because the widespread health problems and ongoing chemical exposure have not been documented, which contrasts residents’ reports. The head of the National Transportation Safety Board recently said the agency’s investigation showed the venting and burning of the vinyl chloride was unnecessary. The producer claimed there was no dangerous reaction inside the tank cars, which, according to Ohio’s governor and local fire chief, were never told this information. The full investigation of the train derailment will not be complete until June of this year, but the crash was likely caused by the overheating of a wheel bearing that was not detected in time by one of the sensors. The cleanup should be complete by the end of this year according to the EPA.
Were you exposed to a Toxic Substance or affected by the train derailment in Ohio? Contact us today to see if you could be entitled to compensation. Call 412-471-3980 or fill out our contact form to speak to a member of our team.
