April 9 (UPI) — Norfolk Southern Railway signed off on a $600 million agreement to settle a class-action lawsuit stemming from the massive derailment in East Palestine, Ohio, last year, the Atlanta-based company confirmed Tuesday.
The settlement still needs to be approved in court but would resolve all class-action claims within a 20-mile radius from the derailment, the company said in a statement.
It would also resolve personal injury claims within a 10-mile radius from the derailment, from anyone choosing to participate in the claim.
“This agreement does not include or constitute any admission of liability, wrongdoing, or fault,” the company said in a statement.
“It was reached through extensive negotiations with court-appointed class counsel and with the expert assistance of former federal district judge Layn Phillips, a nationally renowned neutral mediator.”
The company expects to formally submit the proposal to the U.S. District Court for the Northern District of Ohio later this month.
The money would be earmarked to ensure there is uninterrupted clean drinking for the village of approximately 4,700 residents in northeastern Columbiana County, Ohio. It would also go towards maintaining home values and providing healthcare.
On Feb. 3, 2023, 38 cars on a Norfolk Southern train derailed, 20 of them carrying hazardous materials, including 115,580 gallons of vinyl chloride.
In the months following the derailment, the Justice Department sued Norfolk Southern on behalf of the Environmental Protection Agency, alleging violations of the Clean Water Act.
At the time, Attorney General Merrick Garland said the suit would “ensure that Norfolk Southern carries the financial burden for the harm it has caused and continues to inflict on the community.”
The company later reported a $387 million charge for post-derailment cleanup was partly to blame for a drop in first-quarter 2023 earnings by 34% to $711 million, down from $1.1 billion in the first quarter of 2022.
Ohio Attorney General Dave Yost later sued the railway in a separate filing, alleging the company did not properly inspect or repair the train prior to the derailment.
Last fall, Ohio businessman Edward Wang filed suit against Norfolk Southern for $500 million, alleging damage and loss of business because of the derailment.
“Literally devastated my life and my multiple businesses in East Palestine,” Wang said at the time.
Tuesday’s settlement does not affect Wang’s legal proceedings.
Norfolk Southern has already paid $104 million in community assistance to the East Palestine area for various projects, as well as $4.3 million for drinking water infrastructure upgrades.
“The agreement is designed to provide finality and flexibility for settlement class members. 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,” the company said in the statement.
“This could include healthcare needs and medical monitoring, property restoration and diminution, and compensation for any net business loss. 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.”
