Norfolk Southern said the agreement will resolve all class action claims within a 20-mile radius of the Ohio derailment
Norfolk Southern $NSC is going to pay out $600 million in a class-action lawsuit settlement following the disastrous February 2023 train derailment in East Palestine, Ohio. That may sound like a lot of money, but some worry that it isn’t nearly enough to cover all of the long-term health issues that may pop up down the road. On top of that, $600 million is not exactly a penalty for a company that made $3 billion in revenue in just the first three months of this year.
Just about a year ago, more than three dozen freight cars derailed on the outskirts of East Palestine – near the Pennsylvania border. Several of these cars spilled out some seriously hazardous material that caught fire. Three days later, officials blew open five more cars that were filled with vinyl chloride and burned the toxic chemical because they were worried it was going to explode, according to the Associated Press. An evacuation was called, and about 1,500 to 2,000 of the resident’s nearly 5,000 residents were displaced.
Norfolk Southern said the agreement – if the court approves it – will resolve all class action claims within a 20-mile radius of the derailment and all personal injury claims within a 10-mile radius. Because of that, folks in East Palestine are worried that the money divvied up won’t actually amount to very much since that zone includes other, larger towns. From the Associated Press:
“It’s not nowhere near my needs let alone what the health effects are going to be 5 or 10 years down the road,” said Eric Cozza, who had 47 family members living within one-mile of the derailment.
The company said individuals and businesses will be able to use money from the settlement however they want to address the adverse impacts of the derailment. Folks within the 10-mile zone can still choose to pursue additional compensation. The settlement didn’t include any admission of wrongdoing or fault, according to the Washington Post. In a statement, the rail company said it kept its promise to make things right with the people of East Palestine. Here’s more from The Post:
The settlement requires approval by a judge, but Norfolk Southern said payouts could begin by the end of the year. The railroad said covered residents and businesses will be able to use their share of the settlement funds however they see fit to address the impacts of the derailment.
A federal judge in Ohio consolidated 31 lawsuits over the incident into a single case last year, but it wasn’t immediately clear how many people stood to benefit from the settlement. The allocation of funds will be handled by lawyers appointed by the judge.
Norfolk Southern had previously agreed to $104 million in aid to the community.
The AP reports the rail company has already spent over $1.1 billion on its response to the derailment. It also has promised to create a fund meant to help pay for the long-term health needs of people in the community, but it hasn’t been finalized yet.
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