Norfolk Southern announced Tuesday it reached a settlement to resolve all class action lawsuits brought in the area surrounding the site of the East Palestine, Ohio, train derailment in 2023.
If a court approves the $600 million agreement, individuals and businesses in a 20-mile radius of the site would be compensated. Additionally, personal injury claims within a 10-mile radius of the incident would be resolved.
"This is another promise kept by Norfolk Southern to make it right for the people of East Palestine and the surrounding communities. In March 2023, the company made commitments to address three long-term concerns of residents: drinking water, home values, and healthcare. Already, the company has announced programs for drinking water and home value assurance. The company is going further through this comprehensive settlement—providing additional, significant monetary relief to individuals, including for healthcare, and to help qualifying local businesses continue to rebuild and grow.”
This settlement furthers the work Norfolk Southern has done to make it right in East Palestine and the surrounding communities. In addition to this settlement, Norfolk Southern has made contributions including:
- $104 million in community assistance to East Palestine and the surrounding areas 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, and $9 million to local first responders;
- $4.3 million to support upgrades to drinking water infrastructure;
- $2 million for community-directed projects;
- $500,000 grant for economic development; and
- Ongoing support to the community through the Family Assistance Center and programs such as the Interim Value Assurance Program. (Norfolk Southern)
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Notably, the company said the agreement is not an admission of “liability, wrongdoing, or fault.”
According to a preliminary report from the National Transportation Safety Board, surveillance video showed “what appeared to be a wheel bearing in the final stage of overheat failure moments before the derailment.”
NTSB Chairwoman Jennifer Homendy called the tragedy “100 percent preventable” and “no accident.”
In a joint statement, attorneys Seth A. Katz, M. Elizabeth Graham, Jayne Conroy and T. Michael Morgan said they believe the agreement is a "fair, reasonable, and adequate result for the community on a number of levels, not the least of which is the speed of the resolution, and the overall amount of the awards residents can expect, which will be significant for those most impacted by the derailment."
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