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Norfolk Southern Settles Ohio Derailment Lawsuit For $600 Million
https://www.whatjobs.com/news/usa/us-business-news/norfolk-southern-settles-ohio-derailment-lawsuit-for-600-million
By Nithya Bose in Business News, posted April 11, 2024
Norfolk Southern has agreed to pay $600 million to settle a class-action lawsuit arising from its train derailment in February 2023 in Ohio.
The accident in East Palestine released hazardous materials.
This agreement requires approval from Judge Benita Y. Pearson of the US District Court for the Northern District of Ohio.
It aims to compensate residents and businesses within a 20-mile radius and cover personal injury claims within 10 miles of the incident.
The railway 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 health care needs and medical monitoring, property restoration and diminution, and compensation for any net business loss.”
The plaintiffs' lawyers said the settlement was “a fair, reasonable and adequate result for the community on a number of levels,” including the timely resolution and the amount of money residents and businesses would receive.
The number of eligible beneficiaries remains undefined, but it is expected to reach tens of thousands.
The derailment involved the release and controlled burn of vinyl chloride.
It led to the evacuation of hundreds and raised long-standing concerns about environmental and health safety among locals.
The incident has prompted calls for heightened rail safety measures and legislative action, though progress has been slow, with derailment rates on the rise.
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"A fair, reasonable and adequate result for the community on a number of levels”
Norfolk Southern has contributed over $100 million in aid to the community, including direct payments to affected residents.
While the company has not admitted liability, this settlement, reached after significant mediation, represents a step towards addressing the community's needs and concerns.
Norfolk Southern also faces ongoing litigation from Ohio's attorney general regarding the environmental repercussions of the derailment.
The state seeks a comprehensive review of the incident's causes and accountability measures to prevent future occurrences.
The National Transportation Safety Board's final report on the accident is still pending, with investigations ongoing.
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